Steemit Crypto Academy | Homework Task 3 For @stream4u | What is Chart Patterns? | Price Breakout - Continuation Patterns - Reversal Patterns | STOPLOSS.


Hello Steemian,

This Homework post is of task 3 provided by @stream4u.

In this post, I will be sharing my thoughts on Chart Patterns,
I hope you will get some valuable information from this post.

Lets Began...

task-3.png
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The below Homework given by our professor: @steam4u

  • What Is A Chart Pattern? Explain with Candlestick Charts.
  • What Is A Price Breakout? Explain with Candlestick Charts and mention the price levels.
  • What Is A Continuation Pattern? Explain with Candlestick Charts and mention the price levels.
  • What Is A Higher High Formation? (Explain with one of the crypto coin charts where the Higher High Formation identified.)
  • What Is A Lower Low Formation? (Explain with one of the crypto coin charts where the Double Top Pattern identified.)
  • What Is A Reversal Pattern?
  • What Is A Double Top Pattern? Explain with one of the crypto coin charts where the Double Top Pattern identified.
  • What Is A Double Bottom Pattern? (Explain with one of the crypto coin charts where the Double Bottom Pattern identified.)
  • In Investing & Trading What Is The Importance of Stop Level(STOPLOSS)?
  • Where To Find & How To Set A Stoploss?
  • What Understood From This Course?/ Conclusion.

The below homework is submitted by @y0gi

⭕️What Is A Chart Pattern? Explain with Candlestick Charts.
✅Chart pattern are line which tells us about the uptrend and downtrend of the asset, Chart pattern help the user to understand where and when to make an order for the assets, Keeping track on this patterns are the first step before buying any of the assets.
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✅The chart pattern can be created by different time frames like 15M, 1D and etc, Choosing time frames depends upon the traders what type of trading they are planning to do long term, short ort term, and intra-day. In above screenshot trader can identify the support and resistance of the asset by the pattern chart this will create more clarity on the asset,

⭕️What Is A Price Breakout? Explain with Candlestick Charts and mention the price levels.
✅Price breakout means huge fluctuation upwards or downwards, If huge upwards then the asset will brl break its resistance, or if dards then it will break its support.

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✅In the above image, traders can find both the scenario of price breakdown, if you have a look at the left-hand side of the above screenshot, The initial value of the asset was 8.990 after the price breakdown upwards it directly jumped to 12.699, Also if traders will have at the look in the middle of the chart from 12.399 the price breakdown downwards and landed breaking the support of the chart and came down to 8.780, A certain change in the price is called as price breakdown.

⭕️What Is A Continuation Pattern? Explain with Candlestick Charts and mention the price levels.
✅Continuation pattern will represent the chart whether it is going upwards direction or downwards direction, Any trend which is being continued for a while is now as continuation patterns it may be upwards or downwards
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Downward Continuation Pattern(ImageImage source)<

Upward Continuation Pattern(ImageImage source)<

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✅On the left-hand side, the chart pattern is a continuation of upwards, Where the price of the asset is not getting dropped anymore it is continuously raising upwards


✅On the right-hand side, the chart pattern is a continuation downwards, Where the price of the asset is getting dropped, and there is less chance of raising up

⭕️What Is A Higher High Formation? (Explain with one of the crypto coin charts where the Higher High Formation identified.)
✅The higher high formation means in every coming day the asset closes on a higher price as compared to yesterday's closing price, In higher high traders get confidence to invest in such asset which gives them higher high formation.
*

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The above screenshot is of BTT taken from wazirX, The above screenshot trend clearlclearly helps us understas asset is having higher high formation.

⭕️What Is A Lower Low Formation? (Explain with one of the crypto coin charts where the Double Top Pattern identified.)
✅The Lower low formation means in every coming day the asset closes on a lower price as compared to yesterday's closing price, In Lower low traders don't get confidence to invest in such asset, which keeps traders away from such assets because in such asset the risk of loss is much higher.
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Image SImage Source" alt="Screenshot 2021-02-27 010149.png">
e above screenshot is of BTT taken from wazirX, The above screenshot trend clearly helps traders to understand this asset is having Lower Low formation. This trend can turn into a loss.

⭕️What Is A Reversal Pattern?
✅Reversal pattern means an asset price dropped after a certain limit and after some days/hours it again came back to its original price point from where it was dropped.
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Image SoImage Source" alt="Screenshot 2021-02-27 011505.png">
the above screenshot, the price was dropped from 2298 and after some time it again came back to its original price from where it was dropped, The above screenshot clearly mentioned that it is a reversal pattern.

⭕️What Is A Double Top Pattern? Explain with one of the crypto coin charts where the Double Top Pattern identified.
✅In the double top pattern, the asset reaches a higher peak and came down, and sometimes it again reaches the top, This process of reaching the highest peak twice is called Double top pattern.
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Image SouImage Source" alt="double-top-pattern_body_DoubleTop.png">
above image help traders to understand that the asset is reaching twice its higher peak that means the chances of growing this asset is more as compared to any other, This is a sign that resistance can be broken by this asset anytime.

⭕️What Is A Double Bottom Pattern? (Explain with one of the crypto coin charts where the Double Bottom Pattern identified.)
✅In the double bottom pattern, the asset reaches a lower point and came back up, and sometimes it again reaches the lower base from where it was grown, This process of reaching the lowest point twice is called the Double bottom pattern.
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Image SourImage Source" alt="double-bottom-pattern_body_doublebottom.png.full.png">
bove image help traders to understand that the asset is reaching twice its lower point that means the chances of growing this asset is less as compared to any other asset, This is a sign that support can be broken by this asset anytime.

⭕️In Investing & Trading What Is The Importance of Stop Level(STOPLOSS)?
✅The importance of stop loss is avoiding major loss, setting a limit for loss, and once it is reached sold the share to avoid huge loss.
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ove screenshot help traders to under at what point we should apply STOPLOSS, After facing loss mostly new traders think that soon their loss will turn into profit and they wait for the movement, but this can lead to a major loss, So keeping in mind STOPLOSS and setting a limit for loss is very important

⭕️Where To Find & How To Set A Stoploss?
✅Traders need to find a STOPLOSS point in the chart where the trends should go upwards, To set a STOPLOSS point traders needs to identify the support points of the asset, Once the support points are identified then traders can make the decision to set a STOPLOSS point because form the support point the trend will go upwards directions
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⭕️What Understood From This Course?/ Conclusion.
✅By reading this post I understood various think that a trader needs to keep in mind before starting trading or making any decisions in the digital market. How to avoid huge loss we need to set a limit for loss, How to play safely in the market, and many other techniques that will help us to be a good player in the market.

Before finishing up with this homework post I would like to thank @stream4u for making us understand in a much easier way, The homework was so interesting and I was so curious to know about several terms which are being used in the crypto market. We all are waiting you waiting
for your neomework post.



Cheers🍻

Let's Connect👉 @y0gi😁

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Comments 3


Hi @y0gi

Thank you for joining Steemit Crypto Academy

26.02.2021 21:09
0

Thank You @stream4u,

As per your suggestion, I have updated the captions for images

Thank You for your remark


🍻Cheers

Lets Connect👉🏻@y0gi

Steeming India Community: (Member)

india #steemit #crypto #Steem #academy

26.02.2021 21:31
0

26.02.2021 21:35
0