LIVEMeervaes aka Multipreneurs
@Meervaes_aka_Multipreneurs
Technical Analyst, Blockchain Enthusiasts, Crypto Mentor, Founder #Multipreneurs, FB(@TheMultipreneurs) & Twitter (@meervaes) affiliated with top exchanges.
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Don't underestimate power of consistent effort in building wealth. Rome wasn't built in a day,& neither will your crypto portfolio.Eliminate greed, keep learning, keep investing, & watch it grow! ☘️ 🌴
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#Binance #crypto2023 #multipreneurs
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#Binance #crypto2023 #multipreneurs
Bullish and Bearish Alternate Bat Harmonic Pattern
Educational post
Bullish and Bearish Alternate Bat Harmonic Pattern
The origin of the alternate Bat pattern resulted from many frustrated and failed trades of the standard framework. The standard Bat pattern is defined by the B point that is less than a 0.618 retracement of the XA leg. Typically, the best structures employ a 50 percent retracement at the midpoint. Although there’s room for interpretation and other ratios in the standard Bat pattern, I began the notice a peculiarity in those M and W-type structures that possessed a 0.382 retracement or less at the mid-point frequently resulted in an eventual completion that was slightly beyond the expected 0.886 retracement in the standard framework. In many cases before I became aware of this alternate alignment, I would execute trades at the 0.886 retracement within the standard Bat pattern only to close the trade for a loss due to the lack of a reversal in the projected harmonic area. After slightly exceeding the initial point at X for the pattern and triggering my stop loss, many of these reversals would reverse shortly thereafter, usually at the 1.13 extension of the structure. Again, the defining element of these situations was directly attributed to those M and W-type structures that possessed a retracement that was a 0.382 or less at the midpoint. It took some time to differentiate the structures but the more I was “whipsawed” by these patterns the more I realized that further differentiation was required in these cases. Although the special situations for this pattern will be covered in greater detail later in this material, it is important to understand that such specification is required to differentiate the similar structures. It can be very frustrating to try to trade these two types of patterns without differentiating their structures.”
Harmonic Trading: Volume Two Page 110 (Copyright Scott M. Carney 2004 HarmonicTrader Press, 2nd ed. 2010 Financial Times Press)
The Alternate Bat Pattern™, is a precise harmonic pattern™ discovered by Scott Carney in 2003.
The pattern incorporates the 1.13XA retracement, as the defining element in the Potential Reversal Zone (PRZ).
The B point retracement must be a 0.382 retracement or less of the XA leg. The Alternate Bat pattern™ utilizes a minimum 2.0BC projection. In addition, the AB=CD pattern™ within the Alternate Bat is always extended and usually requires a 1.618 AB=CD calculation.
The Alternate Bat pattern™ is an incredibly accurate pattern that works exceptionally well in the RSI BAMM divergence setup.
#Binance #crypto2023 #ethereumshanghaiupgrade #multipreneurs
Bullish and Bearish Alternate Bat Harmonic Pattern
The origin of the alternate Bat pattern resulted from many frustrated and failed trades of the standard framework. The standard Bat pattern is defined by the B point that is less than a 0.618 retracement of the XA leg. Typically, the best structures employ a 50 percent retracement at the midpoint. Although there’s room for interpretation and other ratios in the standard Bat pattern, I began the notice a peculiarity in those M and W-type structures that possessed a 0.382 retracement or less at the mid-point frequently resulted in an eventual completion that was slightly beyond the expected 0.886 retracement in the standard framework. In many cases before I became aware of this alternate alignment, I would execute trades at the 0.886 retracement within the standard Bat pattern only to close the trade for a loss due to the lack of a reversal in the projected harmonic area. After slightly exceeding the initial point at X for the pattern and triggering my stop loss, many of these reversals would reverse shortly thereafter, usually at the 1.13 extension of the structure. Again, the defining element of these situations was directly attributed to those M and W-type structures that possessed a retracement that was a 0.382 or less at the midpoint. It took some time to differentiate the structures but the more I was “whipsawed” by these patterns the more I realized that further differentiation was required in these cases. Although the special situations for this pattern will be covered in greater detail later in this material, it is important to understand that such specification is required to differentiate the similar structures. It can be very frustrating to try to trade these two types of patterns without differentiating their structures.”
Harmonic Trading: Volume Two Page 110 (Copyright Scott M. Carney 2004 HarmonicTrader Press, 2nd ed. 2010 Financial Times Press)
The Alternate Bat Pattern™, is a precise harmonic pattern™ discovered by Scott Carney in 2003.
The pattern incorporates the 1.13XA retracement, as the defining element in the Potential Reversal Zone (PRZ).
The B point retracement must be a 0.382 retracement or less of the XA leg. The Alternate Bat pattern™ utilizes a minimum 2.0BC projection. In addition, the AB=CD pattern™ within the Alternate Bat is always extended and usually requires a 1.618 AB=CD calculation.
The Alternate Bat pattern™ is an incredibly accurate pattern that works exceptionally well in the RSI BAMM divergence setup.
#Binance #crypto2023 #ethereumshanghaiupgrade #multipreneurs
Simple Moving Averages (MA)
Educational Post:
SIMPLE MOVING AVarage (SMA)
Moving Average (MA)The MA – or ‘simple moving average’ (SMA) – is an indicator used to identify the direction of a current price trend, without the interference of shorter-term price spikes. The MA indicator combines price points of a financial instrument over a specified time frame and divides it by the number of data points to present a single trend line.The data used depends on the length of the MA. For example, a 200-day MA requires 200 days of data. By using the MA indicator, you can study levels of support and resistance,market price trend and see previous price action (the history of the market). This means you can also determine possible future patterns. Buy and sell points over crossovers of smaller and bigger MA's etc
#crypto2023 #ETH #ethereumshanghaiupgrade #multipreneurs
SIMPLE MOVING AVarage (SMA)
Moving Average (MA)The MA – or ‘simple moving average’ (SMA) – is an indicator used to identify the direction of a current price trend, without the interference of shorter-term price spikes. The MA indicator combines price points of a financial instrument over a specified time frame and divides it by the number of data points to present a single trend line.The data used depends on the length of the MA. For example, a 200-day MA requires 200 days of data. By using the MA indicator, you can study levels of support and resistance,market price trend and see previous price action (the history of the market). This means you can also determine possible future patterns. Buy and sell points over crossovers of smaller and bigger MA's etc
#crypto2023 #ETH #ethereumshanghaiupgrade #multipreneurs
Bearish Bat Harmonic Pattern
Educational Post:
Bearish Bat Harmonic Pattern
Bearish Bat Pattern
The bearish variation has the opposite implication as the bullish Bat pattern. Let’s now illustrate how the bearish Bat pattern appears, and the price movements within each of its respective legs.
Here you can see the bearish variation and the associated fib ratios for the Bat Pattern:
In a bearish Bat pattern, the initial XA leg will be bearish. The following leg will be the AB leg and will retrace the XA leg upwards by the Fibonacci ratio of 38% or 50%. This again marks the B point of the bearish Bat pattern. Again, the B point holds a special significance within the bat structure, and, it needs to terminate at one of these two specific levels in order to correctly label the structure as a bat.
As we will see later, a deeper retracement at the B point can invalidate this pattern, and instead, can lead to the classification of the pattern as a Gartley. Moving on, the BC leg will ensue and will retrace its prior AB leg by 38 to 88%. Finally, the last leg within the structure, the CD leg, will move higher and terminate at or near the 88% retracement of the initial XA leg. Once this happens, it confirms the bearish Bat structure, signaling an imminent reversal as prices should begin the trade lower.
Trading The Bearish Bat Pattern
Let’s now shift our attention to the bearish Bat version. The trading rules would be the same as described above for the bullish Bat pattern, but in the reverse direction. For the purpose of completeness, we will describe the rules here again in the context of the bearish Bat formation.
Below you can see an illustration that details the bearish Bat pattern, along with some additional notations referring to the trade management process.
We will use our pattern recognition skills, or a harmonic pattern scanner, to locate a potential bearish bat formation on the price chart. Once we have found a structure that qualifies, will need to have a plan to execute a short position. Remember that within the bearish bat pattern as well, we need to play close attention to the termination points at point B and point D. And to reiterate, point B should terminate at either the 38% or 50% Fibonacci retracement as it relates to the XA leg. And D point should end at the 88% retracement level of the XA leg.
Rules For Trading The Bearish Bat Pattern:
Enter with a limit order to sell at the 88% retracement of the XA leg.
Stop loss to be placed just above the swing high at point X
Use a multi-target exit strategy. Target one should be set at the swing high of point B, Target two should be set at the swing low of point C, and finally the last target, Target three, should be set at the swing low of point A.
Bearish Bat Pattern Trading Strategy
Let’s now move on and see the strategy in action for a bearish Bat pattern. If you refer to the chart below you will find the British Pound to Canadian Dollar pair with a bearish Bat pattern highlighted.
The XA leg kicks off the structure, and you can see that the price action within this leg is quite impulsive with strong bearish momentum within the overall price movement. Then as prices move higher in the AB leg, we can see that the B point terminated near the 53% retracement of the XA move. Though this is slightly higher than our preferred 50% level, it is nevertheless within an acceptable range for the classification of the bat pattern.
Then after a minor move lower in the BC leg, the final CD leg brought prices higher taking out the swing B high on its way up. At this point we should have been put on notice that a solid bearish Bat trading opportunity is likely developing.
We would have placed a limit order to sell at the 88% retracement of the XA leg, as price was moving higher in the CD leg. You can see the bar wherein our entry would’ve occurred in the circled area near the top of the chart. Also notice that prices continue to move higher even after our sell order would have executed, and the D point terminated all the way to the 97% retracement of the XA leg, forming a double top.
Since our stop loss would’ve been placed beyond the X point high, we would not have been in any major jeopardy of it being hit in this particular instance. It’s also worth noting that the terminal price bar within the CD leg is clearly a pin bar formation. This further bolsters our outlook for a bearish reversal.
As prices move lower, we can see that our first target was hit by the long bearish candlestick that broke below the swing B high. Afterwards, the price retraced higher a bit, before eventually rolling over to the downside again. As the selling momentum increased, our second target was triggered at the swing low of the C point. This was, however, the best we could hope for on this particular trade because shortly after target two was hit, the price action reverses swiftly and begins to trade higher. Soon afterwards, our stop loss at the extreme of the X point was triggered. As such, or entire position was now closed out, but we would have ended up with an overall profit on the trade.
Summary
The bearish Bat pattern is one of four major harmonic trading patterns. The other three include the Gartley pattern, Butterfly pattern, and Crab pattern. The Bat pattern offers the best reward to risk profile of all these other harmonic structures. This is due to the deep retracement that is required to validate the bat formation. Because of this deep retracement, we able to lean heavily on the major swing point nearby at point X, for the placement of our stoploss.
#Binance #crypto2023 #ethereumshanghaiupgrade #multipreneurs
Bearish Bat Harmonic Pattern
Bearish Bat Pattern
The bearish variation has the opposite implication as the bullish Bat pattern. Let’s now illustrate how the bearish Bat pattern appears, and the price movements within each of its respective legs.
Here you can see the bearish variation and the associated fib ratios for the Bat Pattern:
In a bearish Bat pattern, the initial XA leg will be bearish. The following leg will be the AB leg and will retrace the XA leg upwards by the Fibonacci ratio of 38% or 50%. This again marks the B point of the bearish Bat pattern. Again, the B point holds a special significance within the bat structure, and, it needs to terminate at one of these two specific levels in order to correctly label the structure as a bat.
As we will see later, a deeper retracement at the B point can invalidate this pattern, and instead, can lead to the classification of the pattern as a Gartley. Moving on, the BC leg will ensue and will retrace its prior AB leg by 38 to 88%. Finally, the last leg within the structure, the CD leg, will move higher and terminate at or near the 88% retracement of the initial XA leg. Once this happens, it confirms the bearish Bat structure, signaling an imminent reversal as prices should begin the trade lower.
Trading The Bearish Bat Pattern
Let’s now shift our attention to the bearish Bat version. The trading rules would be the same as described above for the bullish Bat pattern, but in the reverse direction. For the purpose of completeness, we will describe the rules here again in the context of the bearish Bat formation.
Below you can see an illustration that details the bearish Bat pattern, along with some additional notations referring to the trade management process.
We will use our pattern recognition skills, or a harmonic pattern scanner, to locate a potential bearish bat formation on the price chart. Once we have found a structure that qualifies, will need to have a plan to execute a short position. Remember that within the bearish bat pattern as well, we need to play close attention to the termination points at point B and point D. And to reiterate, point B should terminate at either the 38% or 50% Fibonacci retracement as it relates to the XA leg. And D point should end at the 88% retracement level of the XA leg.
Rules For Trading The Bearish Bat Pattern:
Enter with a limit order to sell at the 88% retracement of the XA leg.
Stop loss to be placed just above the swing high at point X
Use a multi-target exit strategy. Target one should be set at the swing high of point B, Target two should be set at the swing low of point C, and finally the last target, Target three, should be set at the swing low of point A.
Bearish Bat Pattern Trading Strategy
Let’s now move on and see the strategy in action for a bearish Bat pattern. If you refer to the chart below you will find the British Pound to Canadian Dollar pair with a bearish Bat pattern highlighted.
The XA leg kicks off the structure, and you can see that the price action within this leg is quite impulsive with strong bearish momentum within the overall price movement. Then as prices move higher in the AB leg, we can see that the B point terminated near the 53% retracement of the XA move. Though this is slightly higher than our preferred 50% level, it is nevertheless within an acceptable range for the classification of the bat pattern.
Then after a minor move lower in the BC leg, the final CD leg brought prices higher taking out the swing B high on its way up. At this point we should have been put on notice that a solid bearish Bat trading opportunity is likely developing.
We would have placed a limit order to sell at the 88% retracement of the XA leg, as price was moving higher in the CD leg. You can see the bar wherein our entry would’ve occurred in the circled area near the top of the chart. Also notice that prices continue to move higher even after our sell order would have executed, and the D point terminated all the way to the 97% retracement of the XA leg, forming a double top.
Since our stop loss would’ve been placed beyond the X point high, we would not have been in any major jeopardy of it being hit in this particular instance. It’s also worth noting that the terminal price bar within the CD leg is clearly a pin bar formation. This further bolsters our outlook for a bearish reversal.
As prices move lower, we can see that our first target was hit by the long bearish candlestick that broke below the swing B high. Afterwards, the price retraced higher a bit, before eventually rolling over to the downside again. As the selling momentum increased, our second target was triggered at the swing low of the C point. This was, however, the best we could hope for on this particular trade because shortly after target two was hit, the price action reverses swiftly and begins to trade higher. Soon afterwards, our stop loss at the extreme of the X point was triggered. As such, or entire position was now closed out, but we would have ended up with an overall profit on the trade.
Summary
The bearish Bat pattern is one of four major harmonic trading patterns. The other three include the Gartley pattern, Butterfly pattern, and Crab pattern. The Bat pattern offers the best reward to risk profile of all these other harmonic structures. This is due to the deep retracement that is required to validate the bat formation. Because of this deep retracement, we able to lean heavily on the major swing point nearby at point X, for the placement of our stoploss.
#Binance #crypto2023 #ethereumshanghaiupgrade #multipreneurs
The biggest individual Bitcoin owners
Educational Post:
The biggest individual Bitcoin owners
Satoshi Nakamoto: Although Nakamoto’s identity is mysterious, it's clear that they mined roughly one million bitcoins between 2009 and 2010. These are stored in 22,000 wallet addresses.
Microstrategy: Michael Saylor's software company Microstrategy has become one of the largest publicly traded companies to put BTC on its balance sheet. Currently, Microstrategy holds 129,699 BTC or about 0.6% of the total Bitcoin supply.
Winklevoss Twins: Tyler and Cameron Winklevoss have long supported cryptocurrencies, and they're some of the most prominent Bitcoin billionaires. The Winklevoss twins have 70,000 BTC in their wallets.
#Binance #crypto2023 #ethereumshanghaiupgrade #multipreneurs
The biggest individual Bitcoin owners
Satoshi Nakamoto: Although Nakamoto’s identity is mysterious, it's clear that they mined roughly one million bitcoins between 2009 and 2010. These are stored in 22,000 wallet addresses.
Microstrategy: Michael Saylor's software company Microstrategy has become one of the largest publicly traded companies to put BTC on its balance sheet. Currently, Microstrategy holds 129,699 BTC or about 0.6% of the total Bitcoin supply.
Winklevoss Twins: Tyler and Cameron Winklevoss have long supported cryptocurrencies, and they're some of the most prominent Bitcoin billionaires. The Winklevoss twins have 70,000 BTC in their wallets.
#Binance #crypto2023 #ethereumshanghaiupgrade #multipreneurs
Bullish Bat Harmonic Pattern
Educational Post:
Bullish Bat Harmonic Pattern
There are different types of the harmonic chart pattern. The Bat pattern is one of the many harmonic patterns named after animals, but what is it?
The Bat pattern is a simple XABCD harmonic pattern that consists of four price swings and five pivot points — X, A, B, C, and D. One of the harmonic patterns was developed by Scott M Carney – it is believed to have a good reward ratio. With the harmonic chart pattern, you may be able to predict how the price might move in the near future.
In this post, we take a look at the Bat harmonic pattern and make a backtest at the end of the article.
Table of contents:
What is a harmonic Bat pattern strategy?
What are harmonic patterns?
Harmonic Bat pattern trading rules
How do traders trade the Bat pattern?
Which timeframe is best for harmonic Bat pattern?
Harmonic Bat Pattern Strategy backtest
What is a harmonic Bat pattern strategy?
The Bat pattern is a simple XABCD harmonic pattern that consists of four price swings and five pivot points — X, A, B, C, and D. One of the harmonic patterns developed by Scott M Carney, the pattern consists of the XA, AB, BC, and CD price swings.
As with other XABCD harmonic patterns, the Bat pattern starts from point X and swings through points A, B, and C, eventually ending at point D, making two impulse waves and two correction waves. The XA and CD swings are the impulse waves, whereas the AB and BC swings are correction waves.
As you can see, the AB swing is a retracement of the XA swing, while the BC swing is a retracement of the AB move. Then comes the CD swing, which extends beyond the B point but doesn’t get to the X point. In a way, the pattern looks like the Gartley pattern — the only difference is in the Fibonacci ratios. As with other harmonic patterns, the Bat pattern can have a bullish or bearish orientation
What are harmonic patterns?
Harmonic patterns are chart formations that arise from a unique pattern of price waves. They typically consist of four price waves with five swing points that follow unique Fibonacci ratios. The harmonic patterns are considered reversal patterns that may either indicate a trend reversal or the reversal of a multi-legged pullback.
By identifying and analyzing harmonic chart patterns, you can predict how the price might move in the near future. But to exploit the trading opportunities that come with the patterns, you must first know the criteria for identifying a valid pattern.
Harmonic Bat pattern trading rules
The criteria for identifying the Bat pattern are as follows:
The XA wave is a normal price swing in the upward or downward direction.
The AB wave is a 38.2% or 50.0% retracement of the XA wave.
The BC wave can be either a 38.2% or 88.6% retracement of the AB wave.
If the BC correction wave is 38.2% of the AB swing, the CD wave should be a 161.8% extension of the BC wave. But if the BC wave is 88.6% of the AB wave, then, the CD wave must be around a 261.8% extension of the BC wave.
Overall, the CD wave should be 88.6% retracement of the XA move.
How do traders trade the Bat pattern?
Traders who trade the Bat harmonic pattern strategy follow these steps:
They identify a potential Bat harmonic pattern: When the price makes three waves that may look like a Bat pattern, smart traders use the harmonic pattern tool in the trading platform to trace and label the price swings and project the D (PRZ) point, which should be at an 88.6% retracement of the XA swing.
They wait for the pattern to complete: When the price gets to the projected D point, they look for signs of the price reversal, such as a reversal candlestick pattern (like the engulfing pattern, pin bar, or an inside bar) or an RSI showing an oversold/overbought signal, as the case may be.
They place their orders accordingly: For a bullish Bat pattern, they go long with a market order once they see a sign of price reversal around the PRZ level. For a bearish Bat pattern, they go short.
They put their stop loss and profit target: A stop loss is placed beyond the X-point. They normally use multiple profit targets to take partial profits at multiple levels, with the first target being at the 38.2% retracement of CD and the second target at 61.8% retracement of CD. A third profit target may come at the level of the C point.
Which timeframe is best for harmonic Bat pattern?
The Bat harmonic pattern strategy can be traded on different timeframes, but many traders like to trade it on the hourly, 4-hourly, or daily timeframe. But we can’t say that those are the best timeframe for the strategy until you do thorough backtesting to find out the timeframe the pattern works best.
Which Time Frame Is Best In Trading?
Harmonic Bat Pattern Strategy backtest
The harmonic bat pattern strategy is very difficult to backtest with precise trading rules and settings. Unfortunately, we are not able to make any meaningful backtest of the pattern. One way to backtest could be to use the zig-zag indicator, but the indicator is forward-looking and not reliable.
In general, because of the lack of objectivity, we believe classical chart patterns might be a dead end for traders. Why would you spend time on something that is not backtested where you have no clue if the pattern is profitable or not? How do you know a pattern is profitable if you have not backtested it?
A backtest doesn’t guarantee anything, but at least you know it has been profitable in the past. If the pattern has not been profitable in the past, you can safely skip it and not waste any more time. Trading is about having a portfolio of trading strategies, not having one or a few subjective classical chart patterns. There is no best trading strategy because you need many to smooth returns.
(If you are new to backtesting and it looks like a daunting task, you might be interested in our backtesting course.)
#crypto2023 #ethereumshanghaiupgrade #BTC #multipreneurs
Bullish Bat Harmonic Pattern
There are different types of the harmonic chart pattern. The Bat pattern is one of the many harmonic patterns named after animals, but what is it?
The Bat pattern is a simple XABCD harmonic pattern that consists of four price swings and five pivot points — X, A, B, C, and D. One of the harmonic patterns was developed by Scott M Carney – it is believed to have a good reward ratio. With the harmonic chart pattern, you may be able to predict how the price might move in the near future.
In this post, we take a look at the Bat harmonic pattern and make a backtest at the end of the article.
Table of contents:
What is a harmonic Bat pattern strategy?
What are harmonic patterns?
Harmonic Bat pattern trading rules
How do traders trade the Bat pattern?
Which timeframe is best for harmonic Bat pattern?
Harmonic Bat Pattern Strategy backtest
What is a harmonic Bat pattern strategy?
The Bat pattern is a simple XABCD harmonic pattern that consists of four price swings and five pivot points — X, A, B, C, and D. One of the harmonic patterns developed by Scott M Carney, the pattern consists of the XA, AB, BC, and CD price swings.
As with other XABCD harmonic patterns, the Bat pattern starts from point X and swings through points A, B, and C, eventually ending at point D, making two impulse waves and two correction waves. The XA and CD swings are the impulse waves, whereas the AB and BC swings are correction waves.
As you can see, the AB swing is a retracement of the XA swing, while the BC swing is a retracement of the AB move. Then comes the CD swing, which extends beyond the B point but doesn’t get to the X point. In a way, the pattern looks like the Gartley pattern — the only difference is in the Fibonacci ratios. As with other harmonic patterns, the Bat pattern can have a bullish or bearish orientation
What are harmonic patterns?
Harmonic patterns are chart formations that arise from a unique pattern of price waves. They typically consist of four price waves with five swing points that follow unique Fibonacci ratios. The harmonic patterns are considered reversal patterns that may either indicate a trend reversal or the reversal of a multi-legged pullback.
By identifying and analyzing harmonic chart patterns, you can predict how the price might move in the near future. But to exploit the trading opportunities that come with the patterns, you must first know the criteria for identifying a valid pattern.
Harmonic Bat pattern trading rules
The criteria for identifying the Bat pattern are as follows:
The XA wave is a normal price swing in the upward or downward direction.
The AB wave is a 38.2% or 50.0% retracement of the XA wave.
The BC wave can be either a 38.2% or 88.6% retracement of the AB wave.
If the BC correction wave is 38.2% of the AB swing, the CD wave should be a 161.8% extension of the BC wave. But if the BC wave is 88.6% of the AB wave, then, the CD wave must be around a 261.8% extension of the BC wave.
Overall, the CD wave should be 88.6% retracement of the XA move.
How do traders trade the Bat pattern?
Traders who trade the Bat harmonic pattern strategy follow these steps:
They identify a potential Bat harmonic pattern: When the price makes three waves that may look like a Bat pattern, smart traders use the harmonic pattern tool in the trading platform to trace and label the price swings and project the D (PRZ) point, which should be at an 88.6% retracement of the XA swing.
They wait for the pattern to complete: When the price gets to the projected D point, they look for signs of the price reversal, such as a reversal candlestick pattern (like the engulfing pattern, pin bar, or an inside bar) or an RSI showing an oversold/overbought signal, as the case may be.
They place their orders accordingly: For a bullish Bat pattern, they go long with a market order once they see a sign of price reversal around the PRZ level. For a bearish Bat pattern, they go short.
They put their stop loss and profit target: A stop loss is placed beyond the X-point. They normally use multiple profit targets to take partial profits at multiple levels, with the first target being at the 38.2% retracement of CD and the second target at 61.8% retracement of CD. A third profit target may come at the level of the C point.
Which timeframe is best for harmonic Bat pattern?
The Bat harmonic pattern strategy can be traded on different timeframes, but many traders like to trade it on the hourly, 4-hourly, or daily timeframe. But we can’t say that those are the best timeframe for the strategy until you do thorough backtesting to find out the timeframe the pattern works best.
Which Time Frame Is Best In Trading?
Harmonic Bat Pattern Strategy backtest
The harmonic bat pattern strategy is very difficult to backtest with precise trading rules and settings. Unfortunately, we are not able to make any meaningful backtest of the pattern. One way to backtest could be to use the zig-zag indicator, but the indicator is forward-looking and not reliable.
In general, because of the lack of objectivity, we believe classical chart patterns might be a dead end for traders. Why would you spend time on something that is not backtested where you have no clue if the pattern is profitable or not? How do you know a pattern is profitable if you have not backtested it?
A backtest doesn’t guarantee anything, but at least you know it has been profitable in the past. If the pattern has not been profitable in the past, you can safely skip it and not waste any more time. Trading is about having a portfolio of trading strategies, not having one or a few subjective classical chart patterns. There is no best trading strategy because you need many to smooth returns.
(If you are new to backtesting and it looks like a daunting task, you might be interested in our backtesting course.)
#crypto2023 #ethereumshanghaiupgrade #BTC #multipreneurs
What is a Node?
Educational Post:
What is a Node?
In telecommunications and software engineering, a "node" refers to a more extensive interconnected network component. In crypto, however, a node is one of the components that run a blockchain's algorithm to verify and authenticate each transaction.Every blockchain is made of nodes. Nodes are generally computer systems that contain a copy of a blockchain's primary protocol and its entire transaction history. Due to decentralization, any individual can run a node anywhere in the world as long as they’re connected to the decentralized blockchain network and have the required resources.What are nodes used for?Nodes can create, send, and receive blockchain data. Their primary purpose is to validate, record, and broadcast each transaction on the network. They ensure that the blockchain is functioning properly and has the ability to reject transactions if they’re malicious. They’re also responsible for executing each blockchain’s consensus mechanism, which is a process that blockchains follow to confirm and validate transactions. The two most common consensus mechanisms are proof-of-work (PoW) and proof-of-stake (PoS).
#Binance #crypto2023 #eth2.0 #multipreneurs
What is a Node?
In telecommunications and software engineering, a "node" refers to a more extensive interconnected network component. In crypto, however, a node is one of the components that run a blockchain's algorithm to verify and authenticate each transaction.Every blockchain is made of nodes. Nodes are generally computer systems that contain a copy of a blockchain's primary protocol and its entire transaction history. Due to decentralization, any individual can run a node anywhere in the world as long as they’re connected to the decentralized blockchain network and have the required resources.What are nodes used for?Nodes can create, send, and receive blockchain data. Their primary purpose is to validate, record, and broadcast each transaction on the network. They ensure that the blockchain is functioning properly and has the ability to reject transactions if they’re malicious. They’re also responsible for executing each blockchain’s consensus mechanism, which is a process that blockchains follow to confirm and validate transactions. The two most common consensus mechanisms are proof-of-work (PoW) and proof-of-stake (PoS).
#Binance #crypto2023 #eth2.0 #multipreneurs
Basic Crypto Terminology & Concepts
Educational Post
Basic Crypto Terminology & Basic Concepts
Crypto Trading Terminology & Concepts
1 Bitcoin = 100 million satoshis (1.00000000 BTC)
What is a Satoshi? The satoshi to bitcoin ratio is 100 million satoshis to one bitcoin.
Exchange: A platform that connects buyers and sellers. Users can buy and sell available cryptocurrencies on the exchange. The top exchanges for trading are Binance, BitMex, and Kucoin.
FOMO: Fear of missing out. This happens when a coin is rapidly rising in value and people buy it without research, hoping to make quick profits or not to be left behind.
FUD: Fear, uncertainty, and doubt. Investors or traders are unsure about the next movement of the coin and sell at market price, causing panic and heavy selloff.
Total supply: The total number of coins that will ever exist. The total supply of Bitcoin is 21 million.
Circulating supply: The number of coins in circulation, or the number of coins that have already been mined.
Bull market: A market in which prices are rising. The coin is making higher highs in a given time frame. Bull markets can depend on time frames. If you look at the BTC chart from 2010 to 2020, you will see many bull markets on the chart.
Bear market: A market in which prices are falling. The coin is making lower lows in the given time frame.
Note: A bull market can have many bearish cycles and vice versa, as shown in the chart.
CMP: Current market price.
Market cap: The product of the current price and circulating supply.
Bubble: A market that is increasing without any technical or fundamental basis. The market continues to increase regardless of market conditions and sentiments. The best example of a bubble market is Tulip Mania.
Bots: Trading bots that trade continuously according to their setups.
Swing trading: Swing traders buy and sell a coin on a daily or weekly time frame. Swing traders do not hold positions for long.
Positional trading: Positional traders wait for the best entry and hold trades for weeks or months to maximize profits.
Day trading: Day traders complete trades daily. They close all positions at the end of the day, regardless of profit or loss.
CPI: Consumer price index.
FOMC: Federal Open Market Committee.
Leverage: Some exchanges allow users to buy or sell more coins than they have. This is possible through leverage. For example, many exchanges such as Binance, Kucoin, OKX, and By bit offer leverage trading. The exchanges allow users to borrow extra money from the exchange and trade with it. You can open a position of $2000 with just $200 by using 10x leverage. Leverage may vary by exchange and coin.
Margin: The total amount of funds required to open a leveraged trade. If the margin value drops below the position value, the position will be closed. For example, if you want to open a $2000 trade with 5x leverage, the margin required will be $400. $400 * 5 = $2000
Long position: Buying assets with leverage. Profit and loss depend on the leverage taken. If the leverage taken is 5x and the spot price moves up 10%, the total profit on a long position is 50% minus exchange fees.
Short position: The opposite of a long position. If you think the price of the coin will go down in the coming days or weeks, you can open a short position with leverage.
Bag holder: A trader holding a large position in a coin for a long time.
Volatility: "Volatility" is the percentage change in the price of an asset. Traders check the daily volatility of a coin before opening a short or long position.
"ROE" is the acronym for Return-on-Equity. It is calculated by the actual margin used in a position.
"Altcoin" refers to all coins except Bitcoin, which are known as altcoins or Alts.
A "Whale" is a person who has a large amount of a given coin.
A "Bull trap" is when the price of a coin suddenly increases and retail traders start buying it. However, the price then falls after a fake out on the chart, resulting in many long positions being liquidated.
A "Bear trap" is the opposite of a bull trap.
"Ask" and "Bid" refer to sell and buy orders, respectively.
"Spread" is the difference between the buy and sell orders. Exchanges with high volume typically have low spreads and vice versa.
"Support" and "resistance" refer to a price level where the price of a coin has bounced back multiple times (support) or has retraced from (resistance).
"Walls" are large orders at a specific price. There are both buy and sell walls.
"Stop-loss" is the price at which traders want to cut their losses. For example, if a coin is bought at 100 with a stop-loss at 90, the position will be closed if the price drops 10%. Stop- loss is an important tool for managing risk in trading.
"Liquidity" is a measure of how actively a coin is traded on an exchange. High liquidity means there are more buyers and sellers on the exchange and that the spreads will be low and orders will be filled easily.
An "uptrend" is when the price of a coin makes higher highs and higher lows in a given time frame.
A "downtrend" is the opposite of an uptrend, where the price makes lower highs and lower lows.
"Consolidation" refers to a price range where the price of a coin will trade after a rally or sell-off. The market will be volatile after breaking out of the consolidation zone.
A "correction" is a fall in price after making a new peak or an upwards rally. In the cryptocurrency market, corrections often result in a 20-30% drop in price after reaching an all-time high.
"Sell-off" occurs when traders start to book profits after a rally, leading to a decrease in the price of the coin.
"Rally" refers to an immediate increase in the price of a coin.
"Pattern" refers to a predefined shape on a chart that has been historically studied by technicians. Traders use these patterns to try to predict future price movements.
A "Limit order" is an order that will only execute at a predefined price if the market reaches that price.
A "Market order" is an order to buy or sell at the current price level, executed immediately.
"Time period" or "time frame" refers to the difference between the formation of candles on a chart. Common time periods include 5 min, 15 min, 30 min, 1 hour, 4 hour, daily, weekly, and monthly.
"ATH" stands for all-time high prices.
"Average down" refers to the practice of trying to lower the average entry cost of a position by slowly buying the asset at decreasing rates.
"Initial Coin Offering (ICO)" is a type of crowdfunding using cryptocurrencies to raise capital for early
"Liquidation is a condition in which positions are closed because there is not enough margin available in the account.
Arbitrage is a trading method that involves buying coins from an exchange with a low price and selling them on another exchange with a high price. For example, if Bitcoin is trading at
$5000 on Binance and $5000 on Bitfinex, traders may buy on Binance and sell on Bitfinex.
Websites for Chart Analysis
There are many websites that offer cryptocurrency charts. Trading view is one of the best websites for chart reading and analysis, as it offers a wide range of tools and indicators for chart analysis. Coinmarketcap and Coingecko also provide charts for cryptocurrencies, but do not have as many tools and indicators available for analysis.
Pump-and-dump refers to a situation in which the price of a cryptocurrency is suddenly increased by a group promoting the coin, followed by a sudden decrease in price due to negative news or heavy selling.
#Binance #eth2.0 #crypto2023 #multipreneurs
Basic Crypto Terminology & Basic Concepts
Crypto Trading Terminology & Concepts
1 Bitcoin = 100 million satoshis (1.00000000 BTC)
What is a Satoshi? The satoshi to bitcoin ratio is 100 million satoshis to one bitcoin.
Exchange: A platform that connects buyers and sellers. Users can buy and sell available cryptocurrencies on the exchange. The top exchanges for trading are Binance, BitMex, and Kucoin.
FOMO: Fear of missing out. This happens when a coin is rapidly rising in value and people buy it without research, hoping to make quick profits or not to be left behind.
FUD: Fear, uncertainty, and doubt. Investors or traders are unsure about the next movement of the coin and sell at market price, causing panic and heavy selloff.
Total supply: The total number of coins that will ever exist. The total supply of Bitcoin is 21 million.
Circulating supply: The number of coins in circulation, or the number of coins that have already been mined.
Bull market: A market in which prices are rising. The coin is making higher highs in a given time frame. Bull markets can depend on time frames. If you look at the BTC chart from 2010 to 2020, you will see many bull markets on the chart.
Bear market: A market in which prices are falling. The coin is making lower lows in the given time frame.
Note: A bull market can have many bearish cycles and vice versa, as shown in the chart.
CMP: Current market price.
Market cap: The product of the current price and circulating supply.
Bubble: A market that is increasing without any technical or fundamental basis. The market continues to increase regardless of market conditions and sentiments. The best example of a bubble market is Tulip Mania.
Bots: Trading bots that trade continuously according to their setups.
Swing trading: Swing traders buy and sell a coin on a daily or weekly time frame. Swing traders do not hold positions for long.
Positional trading: Positional traders wait for the best entry and hold trades for weeks or months to maximize profits.
Day trading: Day traders complete trades daily. They close all positions at the end of the day, regardless of profit or loss.
CPI: Consumer price index.
FOMC: Federal Open Market Committee.
Leverage: Some exchanges allow users to buy or sell more coins than they have. This is possible through leverage. For example, many exchanges such as Binance, Kucoin, OKX, and By bit offer leverage trading. The exchanges allow users to borrow extra money from the exchange and trade with it. You can open a position of $2000 with just $200 by using 10x leverage. Leverage may vary by exchange and coin.
Margin: The total amount of funds required to open a leveraged trade. If the margin value drops below the position value, the position will be closed. For example, if you want to open a $2000 trade with 5x leverage, the margin required will be $400. $400 * 5 = $2000
Long position: Buying assets with leverage. Profit and loss depend on the leverage taken. If the leverage taken is 5x and the spot price moves up 10%, the total profit on a long position is 50% minus exchange fees.
Short position: The opposite of a long position. If you think the price of the coin will go down in the coming days or weeks, you can open a short position with leverage.
Bag holder: A trader holding a large position in a coin for a long time.
Volatility: "Volatility" is the percentage change in the price of an asset. Traders check the daily volatility of a coin before opening a short or long position.
"ROE" is the acronym for Return-on-Equity. It is calculated by the actual margin used in a position.
"Altcoin" refers to all coins except Bitcoin, which are known as altcoins or Alts.
A "Whale" is a person who has a large amount of a given coin.
A "Bull trap" is when the price of a coin suddenly increases and retail traders start buying it. However, the price then falls after a fake out on the chart, resulting in many long positions being liquidated.
A "Bear trap" is the opposite of a bull trap.
"Ask" and "Bid" refer to sell and buy orders, respectively.
"Spread" is the difference between the buy and sell orders. Exchanges with high volume typically have low spreads and vice versa.
"Support" and "resistance" refer to a price level where the price of a coin has bounced back multiple times (support) or has retraced from (resistance).
"Walls" are large orders at a specific price. There are both buy and sell walls.
"Stop-loss" is the price at which traders want to cut their losses. For example, if a coin is bought at 100 with a stop-loss at 90, the position will be closed if the price drops 10%. Stop- loss is an important tool for managing risk in trading.
"Liquidity" is a measure of how actively a coin is traded on an exchange. High liquidity means there are more buyers and sellers on the exchange and that the spreads will be low and orders will be filled easily.
An "uptrend" is when the price of a coin makes higher highs and higher lows in a given time frame.
A "downtrend" is the opposite of an uptrend, where the price makes lower highs and lower lows.
"Consolidation" refers to a price range where the price of a coin will trade after a rally or sell-off. The market will be volatile after breaking out of the consolidation zone.
A "correction" is a fall in price after making a new peak or an upwards rally. In the cryptocurrency market, corrections often result in a 20-30% drop in price after reaching an all-time high.
"Sell-off" occurs when traders start to book profits after a rally, leading to a decrease in the price of the coin.
"Rally" refers to an immediate increase in the price of a coin.
"Pattern" refers to a predefined shape on a chart that has been historically studied by technicians. Traders use these patterns to try to predict future price movements.
A "Limit order" is an order that will only execute at a predefined price if the market reaches that price.
A "Market order" is an order to buy or sell at the current price level, executed immediately.
"Time period" or "time frame" refers to the difference between the formation of candles on a chart. Common time periods include 5 min, 15 min, 30 min, 1 hour, 4 hour, daily, weekly, and monthly.
"ATH" stands for all-time high prices.
"Average down" refers to the practice of trying to lower the average entry cost of a position by slowly buying the asset at decreasing rates.
"Initial Coin Offering (ICO)" is a type of crowdfunding using cryptocurrencies to raise capital for early
"Liquidation is a condition in which positions are closed because there is not enough margin available in the account.
Arbitrage is a trading method that involves buying coins from an exchange with a low price and selling them on another exchange with a high price. For example, if Bitcoin is trading at
$5000 on Binance and $5000 on Bitfinex, traders may buy on Binance and sell on Bitfinex.
Websites for Chart Analysis
There are many websites that offer cryptocurrency charts. Trading view is one of the best websites for chart reading and analysis, as it offers a wide range of tools and indicators for chart analysis. Coinmarketcap and Coingecko also provide charts for cryptocurrencies, but do not have as many tools and indicators available for analysis.
Pump-and-dump refers to a situation in which the price of a cryptocurrency is suddenly increased by a group promoting the coin, followed by a sudden decrease in price due to negative news or heavy selling.
#Binance #eth2.0 #crypto2023 #multipreneurs
Relative strength index (RSI)
Educational Post:
Relative strength index (RSI)
RSI is mostly used to help traders identify momentum, market conditions and warning signals for dangerous price movements. RSI is expressed as a figure between 0 and 100. An asset around the 70 level is often considered overbought, while an asset at or near 30 is often considered oversold.
An overbought signal suggests that short-term gains may be reaching a point of maturity and assets may be in for a price correction. In contrast, an oversold signal could mean that short-term declines are reaching maturity and assets may be in for a rally.
#Binance #crypto2023 #eth2.0 #multipreneurs
Relative strength index (RSI)
RSI is mostly used to help traders identify momentum, market conditions and warning signals for dangerous price movements. RSI is expressed as a figure between 0 and 100. An asset around the 70 level is often considered overbought, while an asset at or near 30 is often considered oversold.
An overbought signal suggests that short-term gains may be reaching a point of maturity and assets may be in for a price correction. In contrast, an oversold signal could mean that short-term declines are reaching maturity and assets may be in for a rally.
#Binance #crypto2023 #eth2.0 #multipreneurs
What is an investment DAO?
Educational Post:
What is an investment DAO?
An investment DAO allows its members to decide when and where to invest its funds. This could be in real estate, DeFi investment vehicles, or any other asset the DAO chooses to invest in. An investment DAO uses the Decentralised Autonomous Organisation (DAO) model to democratize and decentralize the whole investment process. Traditional models put investment power in the hands of a relatively small group of money managers of VC funds and family offices, and hedge funds. Alternatively, investment DAOs offer anyone holding its governance token the ability to make decisions regarding its investments. Instead of using the expertise of a narrow group of individuals, this model prioritizes the wisdom of the crowd when making investment decisions.What is a DAO?A Decentralized Autonomous Organization (DAO) is an organization governed by smart contracts, self-executing pieces of code that run on a blockchain. DAO members deliberate and make decisions that are then executed using these smart contracts. A DAO, in effect, can function without human maintenance and run continuously. Even if DAO members lose interest or abandon the project, the DAO's framework will still live on due to its immutable nature.The most common way DAOs make decisions is through voting mechanisms based on governance tokens. The more of the governance token you own, the more voting power you have. Some DAOs allow any member to make a proposal, while others may limit this right to a specific group. DAOs are used commonly to manage DeFi (Decentralised finance ) projects, blockchains, and other protocols in the crypto world.
#Binance #crypto2023 #eth2.0 #multipreneurs
What is an investment DAO?
An investment DAO allows its members to decide when and where to invest its funds. This could be in real estate, DeFi investment vehicles, or any other asset the DAO chooses to invest in. An investment DAO uses the Decentralised Autonomous Organisation (DAO) model to democratize and decentralize the whole investment process. Traditional models put investment power in the hands of a relatively small group of money managers of VC funds and family offices, and hedge funds. Alternatively, investment DAOs offer anyone holding its governance token the ability to make decisions regarding its investments. Instead of using the expertise of a narrow group of individuals, this model prioritizes the wisdom of the crowd when making investment decisions.What is a DAO?A Decentralized Autonomous Organization (DAO) is an organization governed by smart contracts, self-executing pieces of code that run on a blockchain. DAO members deliberate and make decisions that are then executed using these smart contracts. A DAO, in effect, can function without human maintenance and run continuously. Even if DAO members lose interest or abandon the project, the DAO's framework will still live on due to its immutable nature.The most common way DAOs make decisions is through voting mechanisms based on governance tokens. The more of the governance token you own, the more voting power you have. Some DAOs allow any member to make a proposal, while others may limit this right to a specific group. DAOs are used commonly to manage DeFi (Decentralised finance ) projects, blockchains, and other protocols in the crypto world.
#Binance #crypto2023 #eth2.0 #multipreneurs
What is Support and Resistance?
Educational Post
What is Support and Resistance?
“Support and resistance” is one of the most widely used concepts in trading.
Strangely enough, everyone seems to have their own idea of how you should measure support and resistance.
Let’s take a look at the basics first.
Look at the diagram above. As you can see, this zigzag pattern is making its way up (a “bull market”).
When the price moves up and then pulls back, the highest point reached before it pulled back is now resistance.
Resistance levels indicate where there will be a surplus of sellers.
When the price continues up again, the lowest point reached before it started back is now support.
Support levels indicate where there will be a surplus of buyers.
In this way, resistance and support are continually formed as the price moves up and down over time.
The reverse is true during a downtrend.
In the most basic way, this is how support and resistance are normally traded:
Trade the “Bounce”
Buy when the price falls towards support.
Sell when the price rises towards resistance.
Trade the “Break”
Buy when the price breaks up through resistance.
Sell when the price breaks down through support.
A “bounce” and “break”? Say what? If you’re a little bit confused, no need to worry as we will cover these concepts in more detail later.
#Binance #multipreneurs
What is Support and Resistance?
“Support and resistance” is one of the most widely used concepts in trading.
Strangely enough, everyone seems to have their own idea of how you should measure support and resistance.
Let’s take a look at the basics first.
Look at the diagram above. As you can see, this zigzag pattern is making its way up (a “bull market”).
When the price moves up and then pulls back, the highest point reached before it pulled back is now resistance.
Resistance levels indicate where there will be a surplus of sellers.
When the price continues up again, the lowest point reached before it started back is now support.
Support levels indicate where there will be a surplus of buyers.
In this way, resistance and support are continually formed as the price moves up and down over time.
The reverse is true during a downtrend.
In the most basic way, this is how support and resistance are normally traded:
Trade the “Bounce”
Buy when the price falls towards support.
Sell when the price rises towards resistance.
Trade the “Break”
Buy when the price breaks up through resistance.
Sell when the price breaks down through support.
A “bounce” and “break”? Say what? If you’re a little bit confused, no need to worry as we will cover these concepts in more detail later.
#Binance #multipreneurs
What Is a Candlestick Chart?
Educational Post
What Is a Candlestick Chart?
A candlestick chart is a popular visualization tool used by investors to analyze the price movement and trading patterns of a stock or other security. For each trading period or unit of time (e.g., one day), one candlestick appears on the chart.
every candlestick has a real body (the bulk of the “candle”) and an upper and lower “wick” or shadow. Its opening price (represented by the top of the real body)
Its closing price (represented by the bottom of the real body)
The highest price it traded at (represented by the top of the upper wick/shadow)
The lowest price it traded at (represented by the bottom of the lower wick/shadow)
Whether the day’s closing price was higher (usually green or white) or lower (usually red or black) than its opening price
Candlestick charts are used primarily in technical analysis, which is a process through which investors and analysts attempt to predict price changes in securities based on factors like chart patterns, trading volume, and historical data rather than company fundamentals.
By analyzing historical price and trading data across countless securities, technical analysts have identified a number of patterns that repeatedly appear in candlestick charts and often indicate something significant and actionable, like a downtrend, an uptrend, or a reversal in price movement.
Skill Exercise:
Open tradingview.com select any coin chart and highlight bullish and bearish candlesticks.share in comments or your post in group
#candlesticks #BTC #multipreneurs #cryptotrading #ETH
What Is a Candlestick Chart?
A candlestick chart is a popular visualization tool used by investors to analyze the price movement and trading patterns of a stock or other security. For each trading period or unit of time (e.g., one day), one candlestick appears on the chart.
every candlestick has a real body (the bulk of the “candle”) and an upper and lower “wick” or shadow. Its opening price (represented by the top of the real body)
Its closing price (represented by the bottom of the real body)
The highest price it traded at (represented by the top of the upper wick/shadow)
The lowest price it traded at (represented by the bottom of the lower wick/shadow)
Whether the day’s closing price was higher (usually green or white) or lower (usually red or black) than its opening price
Candlestick charts are used primarily in technical analysis, which is a process through which investors and analysts attempt to predict price changes in securities based on factors like chart patterns, trading volume, and historical data rather than company fundamentals.
By analyzing historical price and trading data across countless securities, technical analysts have identified a number of patterns that repeatedly appear in candlestick charts and often indicate something significant and actionable, like a downtrend, an uptrend, or a reversal in price movement.
Skill Exercise:
Open tradingview.com select any coin chart and highlight bullish and bearish candlesticks.share in comments or your post in group
#candlesticks #BTC #multipreneurs #cryptotrading #ETH
Marubozu
Educational Post
MARUBOZu
Marubozu is a single candlestick pattern and a very important candlestick pattern.
In the Japanese language, the word “Marubozu” means “Bald”.
Deriving from that, a perfect marubozu means a candle with no upper or lower shadow. It will only have a real body.
A marubozu candle can be of two types – the bullish marubozu and the bearish marubozu.
This pattern is a strong indication of trend reversal or trend continuation depending on where it appears.
Benefits of Marubozu Candlestick
Marubozu’s biggest advantage is that, from the Marubozu pattern, we can identify the performance of a stock in the market, also we get a clear-cut trend of the stock.
With Marubozu Candlestick, the trend of the market can be detected very accurately, whether the market will go up or down, we just need to know how to identify the Marubozu candle correctly.
Identification of Marubozu Candlestick Patterns
Marubozu Candle can appear anywhere in the chart,
what was the TREND before the formation of Marubozu, that is, the previous TREND is not important,
the identity of Marubozu is that Marubozu candle has only REAL BODY,
it’s LOW (LOWER SHADOW) Or HIGH (UPPER SHADOW) is not there, even if there is very little LOWER SHADOW or UPPER SHADOW, it can still be called Marubozu.
There are two types of Marubozu Candle
1. Bullish Marubozu Candle
When the Color of the Candle is Green i.e. Bullish, then we call Marubozu or Bullish Marubozu Candle.
It’s exactly the opposite of the Bearish Marubozu Candlestick Patterns.
When a Bullish Marubozu (large green candle) appears on the charts, it’s a sign of bullishness.
A Bullish Marubozu gets formed when the price opens at a certain level, rise, and closes strongly. The bulls are in complete control of the stock.
A big investor or some institution could’ve initiate their long position in the stock.
This can also happen if there is good news related to the company or if a company announces financial results that are above expectations.
If Bullish Marubozu is formed in the chart So what does this mean?
If Marubozu is a Bullish Candle then it means, in the time frame in which Marubozu candle is made, all the sellers i.e. Bulls have been strongly influenced in that trading session, and people can buy the shares at that price.
2. Bearish Marubozu Candle
When the Color of the Candle is Red i.e. Bearish, then we call it Marubozu or Bearish Marubozu Candle.
It’s exactly the opposite the Bullish Marubozu Candle.
When a Bearish Marubozu (large red candle) appears on the charts, it’s a sign of bearishness.
A Bearish Marubozu gets formed when the price opens at a certain level, falls and closes weakly. The bears are in complete control of the stock.
A big investor or some institution could’ve cut their position in the stock.
This can also happen if there is a bad news related to the company or if a company announce financial results that are below expectations.
Bearish Marubozu Candle
If Bearish Marubozu is formed in the chart So what does this mean?
If Marubozu is a Bearish Candle then it means, in the time frame in which Marubozu candle is formed, all the sellers i.e. BEARS have been strongly influenced in that trading session, and people can sell the shares at that price.
How to trade Marubozu Candlestick Patterns
Depending on the color of the candle, it simply means that either the buyers or the sellers got full control of the market.
Depending on the type of Marubozu, the trading style will be different. We will now discuss how to trade with both Bullish Marubozu and Bearish Marubozu.
But in either case, you should wait for another confirmation candle or pattern before entering into a trade.
Trades with Bullish Marubozu Candle
The absence of the upper and lower shadow in a Bullish Marubozu Candle means that the low price is equal to the open price and the high price is equal to the close price. Hence whenever we see a candle with Open = Low and Close = High, we can call it a Bullish Marubozu Candle.
A Bullish Marubozu points that there is so much buying interest in the stock (or instrument) that the market participants were willing to buy the stock at every price point during that session. Therefore the price of the stock closed near its high point for that session.
If the Bullish Marubozu appears in an uptrend it strongly implies a trend continuation. But while appearing in a downtrend, it indicates a trend reversal, that the market’s sentiment has changed and the stock is now bullish.
The expectation is that with this sharp change in sentiment there will have a surge of bullishness and the same will continue over the next few trading sessions. Hence a trader should look for buying opportunities after the occurrence of a bullish marubozu. The suggested buy price is a little above the closing price of the marubozu (Bullish Breakout).
Bullish Marubozu Candle Trade Setup
It does not matter if a stock is in a downtrend or uptrend, when a Bullish Marubozu (large green candle) appears on the chart, it’s considered to be a very bullish sign. And that’s why we should buy the stock. And our position should be LONG.
BUY PRICE – BULLISH Marubozu CANDLE around the CLOSING PRICE
STOP LOSS – BULLISH Marubozu around the CANDLE to LOW PRICE
#Binance #crypto2023 #eth2.0 #multipreneurs
MARUBOZu
Marubozu is a single candlestick pattern and a very important candlestick pattern.
In the Japanese language, the word “Marubozu” means “Bald”.
Deriving from that, a perfect marubozu means a candle with no upper or lower shadow. It will only have a real body.
A marubozu candle can be of two types – the bullish marubozu and the bearish marubozu.
This pattern is a strong indication of trend reversal or trend continuation depending on where it appears.
Benefits of Marubozu Candlestick
Marubozu’s biggest advantage is that, from the Marubozu pattern, we can identify the performance of a stock in the market, also we get a clear-cut trend of the stock.
With Marubozu Candlestick, the trend of the market can be detected very accurately, whether the market will go up or down, we just need to know how to identify the Marubozu candle correctly.
Identification of Marubozu Candlestick Patterns
Marubozu Candle can appear anywhere in the chart,
what was the TREND before the formation of Marubozu, that is, the previous TREND is not important,
the identity of Marubozu is that Marubozu candle has only REAL BODY,
it’s LOW (LOWER SHADOW) Or HIGH (UPPER SHADOW) is not there, even if there is very little LOWER SHADOW or UPPER SHADOW, it can still be called Marubozu.
There are two types of Marubozu Candle
1. Bullish Marubozu Candle
When the Color of the Candle is Green i.e. Bullish, then we call Marubozu or Bullish Marubozu Candle.
It’s exactly the opposite of the Bearish Marubozu Candlestick Patterns.
When a Bullish Marubozu (large green candle) appears on the charts, it’s a sign of bullishness.
A Bullish Marubozu gets formed when the price opens at a certain level, rise, and closes strongly. The bulls are in complete control of the stock.
A big investor or some institution could’ve initiate their long position in the stock.
This can also happen if there is good news related to the company or if a company announces financial results that are above expectations.
If Bullish Marubozu is formed in the chart So what does this mean?
If Marubozu is a Bullish Candle then it means, in the time frame in which Marubozu candle is made, all the sellers i.e. Bulls have been strongly influenced in that trading session, and people can buy the shares at that price.
2. Bearish Marubozu Candle
When the Color of the Candle is Red i.e. Bearish, then we call it Marubozu or Bearish Marubozu Candle.
It’s exactly the opposite the Bullish Marubozu Candle.
When a Bearish Marubozu (large red candle) appears on the charts, it’s a sign of bearishness.
A Bearish Marubozu gets formed when the price opens at a certain level, falls and closes weakly. The bears are in complete control of the stock.
A big investor or some institution could’ve cut their position in the stock.
This can also happen if there is a bad news related to the company or if a company announce financial results that are below expectations.
Bearish Marubozu Candle
If Bearish Marubozu is formed in the chart So what does this mean?
If Marubozu is a Bearish Candle then it means, in the time frame in which Marubozu candle is formed, all the sellers i.e. BEARS have been strongly influenced in that trading session, and people can sell the shares at that price.
How to trade Marubozu Candlestick Patterns
Depending on the color of the candle, it simply means that either the buyers or the sellers got full control of the market.
Depending on the type of Marubozu, the trading style will be different. We will now discuss how to trade with both Bullish Marubozu and Bearish Marubozu.
But in either case, you should wait for another confirmation candle or pattern before entering into a trade.
Trades with Bullish Marubozu Candle
The absence of the upper and lower shadow in a Bullish Marubozu Candle means that the low price is equal to the open price and the high price is equal to the close price. Hence whenever we see a candle with Open = Low and Close = High, we can call it a Bullish Marubozu Candle.
A Bullish Marubozu points that there is so much buying interest in the stock (or instrument) that the market participants were willing to buy the stock at every price point during that session. Therefore the price of the stock closed near its high point for that session.
If the Bullish Marubozu appears in an uptrend it strongly implies a trend continuation. But while appearing in a downtrend, it indicates a trend reversal, that the market’s sentiment has changed and the stock is now bullish.
The expectation is that with this sharp change in sentiment there will have a surge of bullishness and the same will continue over the next few trading sessions. Hence a trader should look for buying opportunities after the occurrence of a bullish marubozu. The suggested buy price is a little above the closing price of the marubozu (Bullish Breakout).
Bullish Marubozu Candle Trade Setup
It does not matter if a stock is in a downtrend or uptrend, when a Bullish Marubozu (large green candle) appears on the chart, it’s considered to be a very bullish sign. And that’s why we should buy the stock. And our position should be LONG.
BUY PRICE – BULLISH Marubozu CANDLE around the CLOSING PRICE
STOP LOSS – BULLISH Marubozu around the CANDLE to LOW PRICE
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long Legged, Dragon Fly, & Gravestone Doji
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Long Legged Doji
Long-legged Doji – Indecisive candle with both a lower and upper wick, and the open/close near the midpoint.
Dragonfly Doji – Either bullish or bearish candle (depending on context) with a long lower wick and the open/close near the high
Gravestone Doji – Bearish reversal candle with a long upper wick and the open/close near the low.
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Long Legged Doji
Long-legged Doji – Indecisive candle with both a lower and upper wick, and the open/close near the midpoint.
Dragonfly Doji – Either bullish or bearish candle (depending on context) with a long lower wick and the open/close near the high
Gravestone Doji – Bearish reversal candle with a long upper wick and the open/close near the low.
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Spinning Top
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Spinning Top
The spinning top candlestick pattern has a short body centred between wicks of equal length. The pattern indicates indecision in the market, resulting in no meaningful change in price: the bulls sent the price higher, while the bears pushed it low again. Spinning tops are often interpreted as a period of consolidation, or rest, following a significant uptrend or downtrend.On its own the spinning top is a relatively benign signal, but they can be interpreted as a sign of things to come as it signifies that the current market pressure is losing control.
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Spinning Top
The spinning top candlestick pattern has a short body centred between wicks of equal length. The pattern indicates indecision in the market, resulting in no meaningful change in price: the bulls sent the price higher, while the bears pushed it low again. Spinning tops are often interpreted as a period of consolidation, or rest, following a significant uptrend or downtrend.On its own the spinning top is a relatively benign signal, but they can be interpreted as a sign of things to come as it signifies that the current market pressure is losing control.
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Doji
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Doji
When a market’s open and close are almost at the same price point, the candlestick resembles a cross or plus sign – traders should look out for a short to non-existent body, with wicks of varying length.This doji’s pattern conveys a struggle between buyers and sellers that results in no net gain for either side. Alone a doji is neutral signal, but it can be found in reversal patterns such as the bullish morning star and bearish evening star.
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Doji
When a market’s open and close are almost at the same price point, the candlestick resembles a cross or plus sign – traders should look out for a short to non-existent body, with wicks of varying length.This doji’s pattern conveys a struggle between buyers and sellers that results in no net gain for either side. Alone a doji is neutral signal, but it can be found in reversal patterns such as the bullish morning star and bearish evening star.
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Exponential Moving Average (EMA)
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Exponential Moving Average (EMA)
The EMA is a moving average that places a greater weight and significance on the most recent data points.
An EMA does serve to alleviate the negative impact of lags to some extent. Because the EMA calculation places more weight on the latest data, it “hugs” the price action a bit more tightly and reacts more quickly. This is desirable when an EMA is used to derive a trading entry signal.
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Exponential Moving Average (EMA)
The EMA is a moving average that places a greater weight and significance on the most recent data points.
An EMA does serve to alleviate the negative impact of lags to some extent. Because the EMA calculation places more weight on the latest data, it “hugs” the price action a bit more tightly and reacts more quickly. This is desirable when an EMA is used to derive a trading entry signal.
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Stochastic Oscillator:
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Stochastic Oscillator:
A stochastic oscillator is a popular technical indicator for generating overbought and oversold signals.The stochastic oscillator is range-bound, meaning it is always between 0 and 100. This makes it a useful indicator of overbought and oversold conditions. Traditionally, readings over 80 are considered in the overbought range, and readings under 20 are considered oversold.
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Stochastic Oscillator:
A stochastic oscillator is a popular technical indicator for generating overbought and oversold signals.The stochastic oscillator is range-bound, meaning it is always between 0 and 100. This makes it a useful indicator of overbought and oversold conditions. Traditionally, readings over 80 are considered in the overbought range, and readings under 20 are considered oversold.
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What is blockchain bridge?
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What is blockchain bridge?
To understand what a blockchain bridge is, you need to first understand what a blockchain is. Bitcoin, Ethereum, and BNB Smart Chain are some of the major blockchain ecosystems, all relying on different consensus protocols, programming languages, and system rules. A blockchain bridge is a protocol connecting two economically and technologically separate blockchains to enable interactions between them. These protocols function like a physical bridge linking one island to another, with the islands being separate blockchain ecosystems.Thus, blockchain bridges enable what is called interoperability, meaning that digital assets and data hosted on one blockchain can interact with another. Interoperability is the cornerstone of the internet: Machines worldwide use the same set of open protocols to talk to each other. In the blockchain space, where there are many distinct protocols, blockchain bridges are essential to enabling a similar ease of exchanging data and value. How do blockchain bridges work? The most common use case for a blockchain bridge is token transfer. For example, you want to transfer your bitcoin (BTC) to the Ethereum network. One way is to sell your BTC and then purchase ether (ETH). However, this would incur transaction fees and expose you to price volatility. Alternatively, you can achieve this objective by using a blockchain bridge without selling your crypto. When you bridge 1 BTC to an Ethereum wallet, a blockchain bridge contract will lock your BTC and create an equivalent amount of Wrapped BTC (WBTC), which is an ERC20 token compatible with the Ethereum network. The amount of BTC you want to port gets locked in a smart contract, and the equivalent tokens on the destination blockchain network are issued or minted. A wrapped token is a tokenized version of another cryptocurrency. It’s pegged to the value of the asset it represents and typically can be redeemed for it (unwrapped) at any point.
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What is blockchain bridge?
To understand what a blockchain bridge is, you need to first understand what a blockchain is. Bitcoin, Ethereum, and BNB Smart Chain are some of the major blockchain ecosystems, all relying on different consensus protocols, programming languages, and system rules. A blockchain bridge is a protocol connecting two economically and technologically separate blockchains to enable interactions between them. These protocols function like a physical bridge linking one island to another, with the islands being separate blockchain ecosystems.Thus, blockchain bridges enable what is called interoperability, meaning that digital assets and data hosted on one blockchain can interact with another. Interoperability is the cornerstone of the internet: Machines worldwide use the same set of open protocols to talk to each other. In the blockchain space, where there are many distinct protocols, blockchain bridges are essential to enabling a similar ease of exchanging data and value. How do blockchain bridges work? The most common use case for a blockchain bridge is token transfer. For example, you want to transfer your bitcoin (BTC) to the Ethereum network. One way is to sell your BTC and then purchase ether (ETH). However, this would incur transaction fees and expose you to price volatility. Alternatively, you can achieve this objective by using a blockchain bridge without selling your crypto. When you bridge 1 BTC to an Ethereum wallet, a blockchain bridge contract will lock your BTC and create an equivalent amount of Wrapped BTC (WBTC), which is an ERC20 token compatible with the Ethereum network. The amount of BTC you want to port gets locked in a smart contract, and the equivalent tokens on the destination blockchain network are issued or minted. A wrapped token is a tokenized version of another cryptocurrency. It’s pegged to the value of the asset it represents and typically can be redeemed for it (unwrapped) at any point.
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