【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.
#BTC The low point is raised. What is happening at the high point?
Yesterday's view, support at 88000 and potential support at 87700 are very close, so attention is needed. This has become the starting point of today's market!
--- The current price vicinity is a stage resistance, where a long position can be taken with the first take profit.
--- 93900 has been pressured several times on the left side, and there is strong resistance here. However, if it is tested again, one should first close the long position, rather than shorting. Wait for the breakout!
--- After breaking through 93900, targets of 95900/98000 can be set, with the latter being very important.
--- 87700 is the dividing line for the strength and weakness of the recent market; if the price falls below this, there will be a risk of a pullback.
Friday's view, if 90100 breaks, it will open up downward space. If a short position was taken on a pullback at 90100, a first take profit can be made near the current price.
--- The weekend market received multiple supports at 88888, indicating that there is support here. The current price has reached this level, so it is advisable to close short positions!
--- The small-scale running range is 88000-90200. Among them, 88000 is very close to the potential support at 87700, so pay attention to this.
--- If the price returns above 90200, a plan can be made to the upside.
Yesterday's viewpoint, 3090-3075 is the potential support-resistance exchange zone, which was touched during the day and a nice rebound occurred. Currently, the price is temporarily above this level, waiting for a drop before shorting.
1/ Stage support at 2980, if broken, it is easy for the market to accelerate.
2/ Lower support at 2870/2780, I think the latter is more important.
3/ Only if it stands above 3250, will there be new upward space.
The price is close to the phase support, and at the current price, I temporarily have no need to short.
---90100 is the phase support, and only when the price breaks below it will there be space to open up. At that time, the market may accelerate (vacuum zone).
--- After breaking 90100, targets can be set at 87700/85300.
--- The strong resistance recently remains around 93900. Only when the price stands above this level will there be new upward space.
1/ In the first image, on the left side, 3250 is a position to initiate a pullback, which will create a stage pressure. As the price gets infinitely close, it is not advisable to chase orders here.
2/ For the pullback, pay attention to 3090-3075 / 2980, where the former may form a support and resistance exchange point.
3/ After breaking 3250, there may be an acceleration in the market. The upper target is 3365, with a limit of 3650.
$BTC Is there no drop under pressure, but also no rise?
When there is no drop under pressure, the possibility of a subsequent breakthrough will increase, so I tend to wait a bit longer for direction!
--- 91900 has formed a support-resistance exchange, and a huge volume K from last night failed to break through this point, so it can be recognized that there is support here. The boundary line is focused here.
--- The potential support is 90100, and if it breaks here, it can easily go back.
--- The upper level of 93900 still has not effectively broken through, only a breakthrough will create new space. The upper target is 95900/98000.
$ETH The correlation of the market is still too strong.
It is also a similar W-bottom daily structure.
1/ On a smaller scale, using 2980 as support, the price is above this level, indicating a strong market.
2/ The automatic rebound high point of the daily W-bottom is 3100, which will form stage pressure.
3/ Strong resistance above at 3250, the cost-effectiveness of shorting here is decent. However, once this level is broken, the market may accelerate again.
Yesterday's view, the breakthrough of 87700 easily leads to an acceleration of the market. The acceleration met expectations, but I didn't expect it to happen so quickly...
--- On a smaller scale, the area around 93000 has been verified multiple times on the left side, representing a phase of strong resistance. However, after the price touched it, there was no significant pullback. Is it trying to break through?
--- After breaking 93900, a plan will be set for upward movement. The obvious targets above are 95900/98000.
--- If the daily line closes above 93000, it is expected to form a W bottom. (Rebound space opens up, but it does not mean the trend will necessarily reverse; the larger scale still leans bearish!)
--- Pay attention to 90100; if it breaks down here, we might have to draw a door back again...
The trend is the same as the big pancake; both have broken through support and resistance exchange points, and both rebound after recovering.
1/ Rebound target 2870-2888/2990.
2/ The current price is a position to start the decline, which will form a phase pressure. Plus, the pressure above is also very close, so going long is really not very good.
3/ Support at 2780, pay attention to the rebound here, it's best to wait for it to break and recover. Even for counter-trend positions, this is how to do it, and I won't elaborate further in the future.
$USDT The market share has reached the top of the range at 6.5%. The recent wave touched it but couldn't break through, contributing to the recent rebound in the cryptocurrency market.
Is there hope this time? Keep an eye on the daily closing K-line in the coming days!
$ETH is almost identical to the script of a big pancake.
Yesterday's view, the current price of 3050 is at the 61.8% rebound position, not suitable for entering long positions. Similarly, this point has become the starting point for a decline~
1/ It is also a high short, at 2870/2990, with the latter being the opening price of a strong supply column on the four-hour chart.
2/ 2780 is the support and resistance exchange point on the left side, and the price is infinitely close, so it is not advisable to short here.
3/ If the price goes down further, I don't even want to trade contracts anymore, I will start adding to my spot position!
Yesterday's view, around 91800 is one of the targets for the rise, no more long positions should be pursued here. What was the result? This became the point of decline~
--- It's not very good to short near the current price because this is a support-resistance exchange level, and the price has not yet broken down!
--- Waiting for the support at 85300 to break down, then plan to go down, targeting 83500 - the previous low.
--- Since the rebound structure has broken down, look for opportunities to short. Focus on two positions, 87700/89600.
On Friday's view, after breaking 91800, we look towards 93200. The target point has a deviation of over 100 dollars, unfortunately, I couldn't get in~
--- The stage low of 89600 is stubbornly not being tested, which has left me a bit confused. This is where I am willing to go long.
--- The target for the rise during this evening is 91800/93100, the price has reached the former, so it is not advisable to chase after it!
--- The area around 93000 is still quite important, after breaking through, we can look towards a target around 98000. This point is more significant, not only is it the neckline of the head, but also the Fibonacci 38.2% retracement level.