Details
Reading the publications on stock trading, it may give the impression that patterns mentioned are much more effective than the usual indicators (MACD, RSI, etc.). The patterns are really great and useful tool. Meanwhile their potential even increased when used in combination with indicators.
Zigzag patterns are a generic name for several types of patterns, among which are patterns of trend change and trend continuation:
We bring to your attention a tool for cryptocurrency trading using the patterns “Head and Shoulders” (hereinafter referred to as the GiP). These patterns show the best results when traversing the history of trades (backtesting). The patterns found on higher timeframes (from 4h) have the greatest power. For them, a candlestick chart with a drawn GiP pattern is issued in a Telegram-chat. GuiPs found on lower timeframes are represented in the GoogleDocs table.
There are 2 types of HS: normal (normal) and inverted (inverse). Normal HS signals price reduction (short position), inverted - price increase (long position). A signal to enter a trade (confirmation of the pattern) is the price crossing the neckline. After that, the price should reach some value (goal). This value (Price Target) is determined by the pattern as the distance from the “Head” to the “Neck” line (Head’s Height (H)), and is plotted from the point of penetration of the “neck” line.
The target defined by the pattern is a very conditional quantity, the achievement of which is not guaranteed. The history of transactions shows that in most cases the price starts moving in the right direction, but it does not reach the final goal. In order not to close the stop-loss transaction, where only a few satoshies were missing from the goal, we take the following actions:
- Move the stop loss as the price increases
- We divide the final target into several sub-target (1-4 - it depends on the size of the overall target).
Patterns, like other tools for analyzing (predicting the movement?) Of the market, make a big profit when trading with the trend. The uniqueness of our tool is that it helps to identify this very trend. If the market starts to fall, then you will see in the Telegram-chat how bearish Gui start to dominate bullish (bearded GuiP will begin to be confirmed in large quantities, and bullish will be canceled). In addition, we have created a composite indicator, which, based on the state of many bitcoin pairs, determines the current state of the market and the direction of future movement. The status of this indicator is also displayed in the “Binance Zigzag Patterns” chat.
Also, our tool allows you to find coins that go against the trend. Counter-trend deals are more risky, but in some cases they allow you to get
Additional Information
| Telegram link | @ccta_ak |
|---|---|
| Market | Binance |
| Price | 0.02 / month 0.04 / 3 months 0.07 / year |