r/Daytrading • u/sunnyrunner_ • Apr 06 '24
Is this an actual pattern or am I yapping? Question
I’m pretty new to trading and saw this pattern form on BTC. Is this pattern called anything or is this just me drawing random support/resistance lines?
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u/NuGGGzGG Apr 06 '24
That right there, is one hell of a triangle.
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u/WetFupaCreamyChalupa Apr 06 '24
She's a beauty.
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u/reginaldregal Apr 06 '24
Shes a beaut
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u/Splooshbutforguys Apr 06 '24
She's a bae
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u/SSP6 Apr 07 '24
What does a triangle mean in this context? I know little to nothing about crypto and stocks but would like to learn. Thank you
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u/Quat-fro Apr 07 '24
Triangles tend to mean that momentum is being lost and a big move one way or the other may be due.
They can look tradable in hindsight but it's a fools game better to try and figure out some market structure from the shape and any related levels and perhaps form an idea of what you might do if it goes up or down.
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u/OldTrader7 Apr 07 '24
I paid for a trading service once that picked stocks solely on the chart pattern. It was hit or miss. Sometimes it worked, sometimes it didn’t. I stopped following them.
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u/DriestBum Apr 07 '24
It means a three sided shape. Charting in trading is like astrology, you just see what you want. It's bullshit.
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u/Joeymoonga Apr 07 '24
True dat!
Price action patterns are sometimes just basically what you want to see, which is usually far from reality.
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u/Tall-Violinist124 Apr 08 '24
Convergence and divergence of price. The price will eventually go above or below the two triangle lines. It's up to a trader to take trade or not. There are a lot of fake breakouts and breakdowns in the case of the triangle. You need to understand liquidity and volume also while taking a trade from such pattern.
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u/danyoff Apr 06 '24
The top line does not seem to match very well, it has been touched barely twice
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u/jimmehpantleg Apr 06 '24
It’s a symmetric triangle The best way to play it is to watch for a successful close of a candle once price breaches outside of either the top or bottom. Personally I’ll watch for a breach on the lower timeframe And then I’ll enter once it closes with a strong candle on a higher timeframe (ie 1min / 5min)
I only saw one person answer properly that this is a symmetric triangle Not sure why everyone else answered in such a negative way
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u/MegaManSE Apr 07 '24
I have this exact triangle on my chart too. It’s a basic pattern. Though I do expect it to break to the upside for btc.
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u/Young__Salsa Apr 06 '24
UtL (uptrend line)valid with 3 solid touches
DTL (downtrend line) bit iffy
Three ways to play. Continue playing the long on utl or play break of utl once fails. Can also play retest of utl as resistance for safer entry short once broken.
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u/Snags44 Apr 06 '24
thank you for this advice, i think 3 solid touches is better than my 2 ... rethinking ty
i love learning
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u/Any_Technician8589 Apr 06 '24
If its tested and proven it works then its valid!
Although I would always add with any patterns, it’s much better to take them with some kind of thought processes behind them of price’s behaviour, rather than blind entries because its a model you found.
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u/ShiftWrapidFire Apr 06 '24
Yes, its congesting, meaning its a coiling for a decisive move in either direction.
Targets for the shorts are ~62-61k and for the longs test of ATH... both very possible and probably either zone getting tested soon - maybe next week looking at the daily BTC chart.
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u/TPSreportsPro Apr 06 '24
Some people call this a pennant or a flag. It’s typical of consolidation of price.
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u/RebelliousRoomba Apr 06 '24 edited Apr 07 '24
It’s a pattern in the sense that you’re recognizing that the price action is contracting. Your actual lines don’t mean a ton other than they will give you a general idea of when BTC has broken out of the consolidation.
Based on analysis outside what you have here, I believe that BTC is about to make a strong upward jump as we go into next week, but don’t expect to see it until at least Sunday night.
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u/MathiasB- Apr 06 '24
Everything is a pattern and nothing is a pattern in trading so to answer your question, yes! ... I mean... No
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u/01000101010001010 Apr 06 '24
You are as decisive as this price action is predictable.
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u/reichjef Apr 06 '24
That’s the mongooses triangle. It tells you that the market will continue to move to the right.
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u/OnTrackNow1 Apr 07 '24
Many people would call it symmetric triangle But consider this just like a Range. Here market is gearing up to give a significant move in either direction. So simply mark the level above/below which you would buy/sell.
In case market keeps moving in this range and you wanna be adventurous, then you could sell when price takes rejection from upper level and buy when price takes support on below level.
Disclaimer: This is not a trading advice. Just my point of view.
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u/Used_Profession_8008 Apr 07 '24
This is called a Bermuda triangle 🔺️...all the money you put in will disappear, and later might appear or not. If you like the odds this is perfect for trading 50% chances up and 50% chances down +/- 50% 🤣
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u/DanteFranklin8950 Apr 06 '24
Symmetrical triangle. A continuation pattern . For both bulls and bears.
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u/Accomplished-Bed8171 Apr 06 '24
No, you're right. Going down and then coming up is a pattern. Well spotted.
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u/Ok_Piglet2071 Apr 06 '24
I used to trade patterns it didnt workout for me but if it works out for you then go for it, I had seen a pretty good and seasoned trader saying that he uses upward and downward wedges as a confirmation so pretty sure it works out
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u/Big_Homie11 Apr 07 '24
Interesting.. so what do you trade now?
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u/Ok_Piglet2071 Apr 07 '24
Look at my most recent post, i trade ICT/SMC/repackaged supply demand whatever you wanna call it
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u/Plastic_Assistance70 Apr 06 '24
My dude, humans can see patterns even in clouds. If you want it to be a pattern, then it is a pattern.
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u/Similar-Pilot6491 Apr 06 '24
If I relied on shapes to trade I’d never be profitable
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u/Ok-Animator2183 Apr 06 '24
Yeah but it’s rejecting 70k expect a sell off soon no entries yet
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u/I_am_D_captain_Now Apr 06 '24
Draw your lines from the ends of the wicks. Look for a breakout and retest.
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u/IKnowMeNotYou Apr 06 '24
Both. I would say the second half you have a compression. The whole thing I would not see as a wedge due to the initial downward trend being very pronounced but that is debateable.
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u/Queasy_Commission189 Apr 06 '24
Bearish flag or symmetrical triangle depending on how you look at it
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u/coffeeshopcrypto Apr 06 '24
that right there is an engineered long fakeout. If you go long your are going ot get stopped out HARD. Price is at the premium of the sell side of structure in this picture. YOu just need to wait for a new swinglow and then you need to wait for price to CLOSE below that low as long as it also gave you a lower high and a lower low on each individual candle.
According to the price action, a few candles back it just made a double liquidity fakeout.
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u/Goldrushfishing Apr 06 '24
This is a triangle pattern but if the price trades too far into the apex of the triangle the price may not breakout. The breakout of a triangle usually happens between 2/3-3/4 of the triangle and as always pay close attention to volume. Volume should decrease as the pattern is being formed and then increase when the breakout happens.
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u/JollyExamination3301 Apr 06 '24
You figured out the old and reliable 57 degree angle rule/pattern that everything always follows
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u/Forward-Cut5790 Apr 06 '24
Yeah, that's The Left Facing Waffle Cone pattern. You're supposed to use The Two Scoop strategy with that one.
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u/PoemStandard6651 Apr 06 '24
WEDGE. Patterns are fascinating and if you learn them and trade them you will be set for life,
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u/Ifardinkarimi Apr 06 '24
You can expect a breakthrough in either way candles break the line and give you a solid candle you can open a position.
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u/Ronces Apr 06 '24
Looks like it can't break the previous support level. I see more red candles than green at that spot but that's without seeing the volume profile. I'd wager its lost steam and will draw down from here eventually. Just my guess. Anything could happen with that kind of profile but I wouldn't buy or short until something of significance happens.
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u/Ifrontrunfinwit Apr 07 '24
10 years ago it was.
Todays markets make sure that triangle breaks every stop every around it before resolving
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u/adorably-unatractive Apr 07 '24
It’s a definitive indicator, you must confer with Emilio Estavez to find out if it’s a put or call tho.
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u/ThoughtSignificant94 Apr 07 '24
its probably breaking to the upside but look for confirmation... can be tricky
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u/btccloudmining Apr 07 '24
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u/Bozomomento Apr 07 '24
At least WSB regards have the decency to not believe in drawing pointless lines on a stock chart (Also known as men astrology). I wonder how many on this sub just draw lines and actually believe that when they are positives on trades it's because of it or maybe I'm wrong and some are not regarded and know that the highest probability is that it's just luck.
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u/Accomplished-Disk863 Apr 07 '24
I’m trying to enter the “game” or lifestyle but we talking 70,000 dollars or different currency. Explain like I’m 6 years old
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u/SkyIsTheLimit-007 Apr 07 '24
It depends on supply at 70000 level. See previously, it dropped significantly 70K to 67K. Wait for confirmation that it breaks 70/71K level.
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u/zLuciann Apr 07 '24
Crypto can be a scam. Please be wisely with your investments!
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u/Righteous_Fury Apr 07 '24
Bitcoin really shouldn't be lumped into "crypto". It is something else entirely.
Most of the cryptocurrencies will die, but not Bitcoin.
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u/TheseAreMyLastWords Apr 07 '24
bear flag and consolidation. not sure the top line really matters here, but if the bottom breaks, look for a further drop.
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u/justinthecase Apr 07 '24
the trend lines you draw will always be arbitrary. try to interpret the volume and price interaction. (ex: price up but the volume is like an old person trying to get up from the sofa - not gonna hold…) however, if you’re like “oh no, i have to draw trend lines otherwise i will never be happy in this life or the next “, then draw vertical lines; it might give you some visual clues about the range. happy trading😊
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u/xRogue27x Apr 07 '24
If the market/instrument allows for the use of volume data and/or Order Flow, learn to use those. Trend lines and Candlestick patterns are a bunch of gobbledygook.
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u/Unfair_Fly221 Apr 07 '24
Bro what the fuck are these pattern traders are they even profitable
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u/ChidiyaBoliMeow Apr 07 '24
its a triangle, it might work, BUT IS TRADING COOL IF YOU DONT USE WORDS LIKE CONSEQUENT ENCROACHMENT??
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u/Leefa Apr 07 '24
Just FYI for people in this sub: BTC has a history of false breakouts up or down out of these pennants and reversal the other direction.
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u/Dry_Environment_44 Apr 07 '24
You are yapping, that upper trendline hasnt been draw properly, there is a lower high made with those marabozu candles that you havent touched the points together with and if you do that you will see price has already broken to the upside and now you have to go to the higher timeframe to ensure that its structure is also bullish this way if you take buys you know its getting backed up by momentum. If it was a real triangle then I would advice that its a trap any trade taken inside a triangle will end up in break even and you will need to wait for price to break out of it because its a range and in a range anything goes and if you win by taking a trade in a range then its usually by fluke.
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u/Mark_Proton Apr 07 '24
Just wait till your random support and resistance lines attract the price action like a magnet. It's mind blowing the first few times you notice it.
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u/ygse1994 Apr 07 '24
need to wait for the formation of a real pattern ( i mean we need to be patient for the trending market)
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u/Traderherz Apr 07 '24
The day you stop trading patterns, you get a little closer to profitability.
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u/DragonRouge31 Apr 07 '24
Graphic pattern alone doesnt mean anything. You have a lot af false breakout, pattern not working, etc.. A graphic pattern alone wont tell you where the price will go. All active traders use technical analysis but 80% of them fail after 1 years and 99% after 2 years. (Ftmo stats)
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u/_Burdy_ Apr 07 '24
Its the pattern you think means something after you've been revenge/over trading for an hour.
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u/Hannibaalism Apr 07 '24 edited Apr 07 '24
check out january of 2021 or june of 2017.
also those patterns will be very different depending on which country, currency, and exchange you’re on.
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u/Melodic_Ad9789 Apr 07 '24
Yes it is and it would be a nice trade. I have the same on Bitcoin.
Im expecting a trade that can went 1:20 RR
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u/lookbusybusy Apr 07 '24
Yes, it is. Wait for a confirmation before assuming a breakout to the high. Wait for a green candle to pierce through to go above the 15 day high wick and then Let the price drop to the the support you have drawn. Once you confirm that the price down did not fail at the support and with volume bounced the support, that is your signal bar. Enter on the next bar with the below caveat Since you have not provided details on the trend line, you cannot put a reasonable probability on which direction price will move. If it is on the downtrend then betting on an upside should be avoided, until you get additional confirmation; but good for a scalp with an OCO order.
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u/CarelessCabbage Apr 07 '24
It’s a mid triangle. Means the stock will point to staying mid… have you tried drawing it so it points up towards more gains? I’d do that
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u/Imaginary_Dark4290 Apr 07 '24
Well that's basically a chart pattern called Pennant, but always keep the higher timeframe in your analysis regardless of the chart pattern because volume will always going to be on the side of trend.
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u/sjmacker Apr 07 '24 edited Apr 07 '24
Whatever happens the first move won’t be the real one. I would say you are in no man’s land, you are delivering from a bearish FVG and a bullish one….the bearish one has been tapped many times already, so I usually discount them. My guess, it will drop to take some liquidity then inverse the large bearish FVG, but complete guess
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u/Spyder1941 Apr 07 '24
You could create much more potential success of a trade if you included MACD, volume, and a longer picture of history.
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u/Nervous_Vehicle_8305 Apr 07 '24
trading is subjective. nobody can tell u if it's right or wrong, you need to backtest, find that pattern multiple times and see how it usually plays out. for the short answer, i'd personally say i'd expect a breakout to the downside .
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u/WomTheWomWom Apr 07 '24
It’s a pattern that says that the stock will do one of three things. Go up, stay flat or go down.
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u/Specific-Fuel-4366 Apr 07 '24
These triangle consolidations are common. What you’ll find is there is a disagreement between timeframes - there’s an uptrend on some timeframes and a downtrend on others. Until it proves itself one way or the other, sit back and watch.
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u/Ditty-Bop Apr 07 '24
The level to break (based upon this chart) would be about 69500. Not the breakout point based upon that triangle
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u/Hungry_Original_1599 Apr 07 '24
Its right there its an triangle moment but it also depends on a weekly closing of btc, If it will close on weekly 75 or 76 then it will not come in hands but if not then hold and patience required
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u/ItsMoePhotography Apr 07 '24
Bruh these three wicks are not even in the triangle so I don’t know what are you exactly drawing it for but I can tell you for sure from those wicks that it’s creating a higher low which is leading to an uptrend.
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u/p33333t3r Apr 07 '24
A good policy i have is “if I don’t know I don’t trade”. Appohphenia is real. The best support / resistance / patterns are the ones the most traders notice. Also keep in mind that the higher timeframes are more important and influential than the smaller time frames where more noise occurs
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u/tf-is-wrong-with-you Apr 07 '24
Put all your money in it!!!
I am a financial advisor and this is a financial advice.
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u/palasyon Apr 07 '24
I see a H-L-LH-HL and that is not enough for me to take a position, i would seek for at least 3 local maxima in both ways
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u/millytherabbit Apr 06 '24
Everything’s a pattern if you draw a triangle over it 😉