You also have the option to opt-out of these cookies. Candle sticks have 5 basic parts. Look for Sara @ssabatino84 in twitter she is very good at this strategy and can provide nice feedback since she also uses TOS. 259 9.4K views 1 year ago In this video you will learn how to draw a broadening formation. When found in an uptrend it indicates not a continuation of that trend, but a near-term reversal of the price action. The Daily chart for Bitcoin does not look good, we have got some bearish indicators from Time Frame Continuity on Daily and Weekly to Hitting the Broadening formation upper trend line and lastly it tried to break but issued a Top Signal (Blue T) followed by Bearish Sell Signal (Red Arrow) and also breaking daily low at $22.3k, This will lead Bitcoin to drop to $21.5K . Read more in the Terms of Use. Descending Triangle. This is benecial because it allows you to remove all biases & only focus on what we KNOW is occurring within the market at any given time. How to Draw and Understand Broadening Formations #TheStrat broadening the functions and responsibilities of schools, is also influenced by discoveries and insights into the psychology of learning. Some patterns suggest continuation in the direction of the previous trend. What Are Megaphone Patterns and How to Trade Them? Differences between a Symmetrical Triangles and Pennant Patterns. Candlestick Overview Before beginning you have to have a basic understanding of candlesticks. TTrades (@TTrades_edu) / Twitter That being said Bro! What Do We Know to Be True About Price Action? I'm a visual learner. TSLA was awful yesterday. Broadening formations may also occur during earnings season when companies may report differing quarterly financial results that can cause bouts of optimism orpessimism. [1] Much better things are in the works. After a big loss in options trading, he decided to take a break and do some research on ways to better his trading game. Technical analysis experts usually use candlestick charts to view stocks. Okay, I've changed the logic and added a pivot_high, pivot_low component for the 3-1-2. It can be considered as the boundary of incoming HIGHs and LOWs until a breakout occurs. useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Outside bars represent a possibility of a broadening formation. You can find our full disclaimer located here. This cookie is set by GDPR Cookie Consent plugin. An inside bar is where the subsequent bar is completely within the preceding bar, not equal to. Jermaines trading career began about two years ago on an easy to begin platform. I usually try to limit myself to that one perfect trade, but TSLA was moving so nicely that I could not resist :). Thus, this study aims to understand how small and medium-sized enterprises (SMEs) adhere to green innovation activities . Conclude support and resistance level based on the higher time frames appreciation or rejection levels. Outside bar represents a reason for future and immediate time frame broadening formation of price behavior. Even if its small. The broadening pattern is often used by traders who trade technical analysis. This script displays the following: The Strat Candle Numbers label each candle, on any timeframe, either a 1, 2, or 3. These broadening formations are heavily used with "The Strat" and can add confluence when looking for reversals within higher timeframe points of interest. You should always understand that PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.