EDUCATION + WORK Harmonious pattern ABCD + "Three movements" BAT

2020年3月9日

I wrote a series of articles on harmonious patterns. On the coin, which I trade from time to time for about two years, a harmonious ABCD pattern is now formed. I decided to publish the information here on the site. I combined a teaching idea with a trading one. Immediately I showed the options for working on a coin, so as not to spam trading ideas and spend time on it. Below I will describe in detail. First, on working on the tool, and then below I will give a little training material. I’ll cut the text as much as possible, as I understand that people don’t want to read a lot of text, for some people this is an overwhelming task)))).

On the chart itself, I showed potential movements depending on the retention / breakout of local support / resistance levels.
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1 work option.

The price has almost reached point D, which could become a potential pivot point in this local movement.

ABCD is nothing more than part of the movement in the channel. Channel width 100%. Therefore, in case of confirmation of point D and a price reversal, the potential first profit is + 100%. If this happens, then the ABCD pattern is reorganized into a harmonious pattern of "Three movements." I have shown the areas of potential reversal and observation on this chart.



2 option work.

A variant of work if the ABCD pattern is not confirmed and point D does not become a price reversal zone. The formation of a triple bottom. Pivoting bullish shape.
The downward stopping zone I showed on the chart. I doubt that it will be pierced, how this will ruin the canvas for the work of the "artist" in the future.
To an important zone of resistance and confirmation of this figure + 100%
Full working out of the figure triple bottom + 300%.



Option 3 (unlikely)

If the price breaks through the support zone (green area) and is fixed in a downward movement below it. Then you should forget about trading this cryptocurrency and "turn gray on the fence" until a good entry point appears. But even in such a situation, when they will do a "trick", you can partially take the movement + 40%.



Note that in any movement options with the correct entry points (reversal zones), the risk is minimal, the profit is maximum, both locally in movements, and is possible when the trend develops and in the global one.
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The previous trading idea for this coin in this pair, which gave + 40%.
Actually now, as in the global price forms a symmetrical triangle, this downward movement is nothing more than a pullback after breaking the triangle up.

The result after a while + 40%.



The same coin is only a trade for bitcoin.
BAT / BTC Fractal 2019. History repeats itself. Potential + 180%

And the result is + 40% and now rollback.
Notice, everything goes according to the fractal plan.



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LEARNING MATERIAL on the theme of harmonious patterns ABCD and "Three movements".

1) ABCD pattern.

This is the simplest version of a harmonious pattern. Nevertheless, the figure is an important brick on the way to understanding the principles of constructing harmonic figures and, moreover, is part of most of them.

ABCD is a reversal pattern foreshadowing a change in market trends. That is, the figure helps to predict when the price ends the growth and prepares to fall, or vice versa, completes the fall and prepares for growth. A key feature of the pattern is the symmetry of the AB and CD knees.

The figure begins with a rise or fall in price on the segment AB. The BC segment is usually a sharp correction, the size of which should fit in 38.2% - 88.6% of AB. Ideally, the size of the correction should be from 61.8% to 78.6%.

At point C, the price reverses and continues to move parallel to segment AB. In this case, point D should be in the range of 113% - 261.8% of the knee BC.

The main rule is to observe the symmetry of the pattern. Ideally, the length of the elbow CD should be fully consistent with the length AB. That is, it means matching both in time and in price.

Rules for trading a pattern:

1) The length AB should correspond to the length of the CD.
2) The time it took for the price to go from point A to B should be similar to the time from C to D.

This harmonious ABCD pattern has two varieties:

1) Bearish pattern.
2) Bullish pattern.

Bearish ABCD pattern gives a sell signal.
Bullish pattern ABCD gives a buy signal.

TNT / USD 1 day. Harmonious bearish pattern ABCD.



ETH / USD 1 day. Harmonious bullish ABCD pattern.



In real trading on the market, there are a variety of variations of this pattern. But, it’s a good rule to observe the corresponding sizes of AB and CD corrections, since it is much more difficult to trade an asymmetric pattern. Asymmetric, incomprehensible patterns are better to skip.

If I trade such formations, then without a Fibonacci grid, I do not need it. I already see what she has to show. In most cases, this is a working analysis tool and at the beginning of your analysis you should use a Fibonacci grid.

In trading these formations, I use strong support / resistance levels, the symmetry of this formation and healthy logic in the calculations. Tradingview has a template for this harmonious ABCD pattern and the "three movements" pattern. This simplifies the work and makes it possible to quickly search for this formation on the chart.

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2) Model of the pattern "Three movements".

The Three Movement model is a fairly well-known pattern. Its analogues can be found in wave analysis (diagonal triangle) and the book of Linda Raschke (three Indians). It is very reminiscent of ABCD, as if a continuation of this formation. This is a price movement in an upward or downward channel. In the framework of harmonious trading, we consider this model taking into account the Fibonacci ratios.

In the classic version of the "Three Movements" pattern, it is provided that movements 2 and 3 complete on projections 1.27 or 1.618. Correction of movements 1 and 2 - at the levels of 0.618 or 0.786. In the real market, models with ideal proportions are quite rare. Therefore, if you want to really earn money, get used to the fact that book "idealized" patterns in the real market are very rare. You need to be able to trade what is, and not what you want.

This model has a greater predictive property if it is in the expected end of the trend. Typically, the formation of the “Three Movements” is a signal that the market already does not have enough strength to continue the trend and perhaps the beginning of at least a correction.

This harmonious Three Movement pattern has two varieties:

1) Bearish pattern.
2) Bullish pattern.

LTC / USD 1 day. Harmonious bearish pattern "Three movements" (ascending channel).



In the example, we see that the upward trend price has broken, which triggered a trend reversal.

ETH / USD 1 day. Harmonious bullish pattern "Three movements" (downward channel).



As we see, the next correction wave reached the resistance line of the downward channel. The target is taken.

Learn to “predict” a more likely future. Always have different options for your work in a given situation. Work according to the basic plan, based on the situation that is being implemented.

In order to trade in a market in which the deposits of most traders are destroyed, you must have vast experience, and be a whole head taller for the rest.

2020年5月7日

註釋

BAT / USDT
The downward movement continued, but the support was not confirmed, but made its way. Therefore, there was no entry point.