I have been trading quite a while and based on my observation I would like to share and discuss the key patterns that I have seen from time to time, so that we can predict the movement of price, and the objective is to know :
- The direction of the price
- The range of the movement
Then, based on these patterns, depending on the Time Frame that we choose, we would be able to place our trade profitably.
The pattern will be derived from these indicators :
- Candlestick (non-conventional - my definition)
- Stochastic 5,3,3.
Here is my first chart, from the chart posted, where will be the direction of the price and how far is the range ?
This is my analysis (don’t know whether it can be that accurate):
The price will move up just a bit,then go down below the last low around 10-20 pips.
Let’s us see whether this is happening (I may be wrong - because so far it has been my ‘feel’, so by putting here, it will be our reference, from time to time.
I have to admit that the prediction is wrong, now, attached chart, based on my experience, when the stochastic shows ‘waves’ above the 80 line, the price is going up, around 20 pips more, above the last high, before going down.
And, actually that was my almost 100% correct pattern recognition, stochastic waves above 80.
Attached is the current chart.
I was about to post this, after going down a bit, consolidate, price will still move up, above the last high, this time quite big move around 20-40 pips, before consolidating again.
True enough, current price.
Now, price will be ranging for a while, around 2-3 bars, before, moving upward, above the last high, around 10-15 pip range, before going down.
The prediction is wrong - price wants to go down earlier, for now, price would move up a bit, around 10-15 pips, before continuing going down - stoch around 20 line, perhaps around 20-25 pip below the last low. It will probably consolidate around the last swing low, after that, will continue going downward.
Price has broken the last swing low, it will move downward below the last low, for around 20 pips before consolidating.
Price is ranging or consolidating now, it will probably go down, near the last low, before going up again.
I believe, the consolidation is about to finish. At the cross of Stoch up, the price will move up first around 20 pip above the previous high.
A classic pattern showing the price will go up, not much around 10-15pip.
Opps, classic pattern of big movement downward around 20-30 pip. (There is no waves of stoch above 80 line)
Pattern like this normally price will move downward near the last low. If it breaks that low, it wouldn’t be that much. Price is ranging.
If stoch cross up, a big move upward 20-30 pip. And, if stoch cross the 80 line, it will go up even more more.
As expected. Now, if stoch cross above the 80 line, big movement upward .
Stoch has crossed the 80 line, expect big movement upward around 20-30 pip.
A stoch cross down looking like this, is a small retracement downward, before going up again (I hope I am right).
Ok, probably this is the big move, after the stoch cross again, after breaking the last high, after passing 80 line -
