List of trading patterns

Since I am new to trading I want to make a quick log of trading patterns that occur for cypto currencies and adapt strategies for future reference.

I want these patterns to be as comprehensively detailed as possible so I want to list the market conditions needed for such a pattern to occur

NEO case study

Here the market conditions had just reversed from bearish to bullish with bitcoin making a massive jump. People were still speculative on the market direction. This is shown bu the deep wave 2 retracement. The community then exploded as the price of bitcoin began to soar. More and more money was being pumped into the market.

How the play this. We can identify the wave 1 of the trend by seeing the large pumps in volume and increas in the number of buyers. After the retracement the price action was mostly dictated by buying action. We have located our wave 3. The best course of action at this point is to ride the wave up if you are not already in the trade. Using the wave 1 and our fib retracement we can identify the possible price movement of the wave 3 while also using a fib time to estimate the location of the wave 3 termination. This is where we can start looking to take profits and prepare for the coming retracements

As a rule of thumb in a bull market for a coin with strong fundamentals the wave 3 will usually terminate at around the 2.618 fib level.

At this point anyone in their right state of mind would start to take some profits. This can be observed by the shallow correction ~.5 of the length of wave 3 . Wave 4 should be made out of a corrective pattern. If we can observe the pattern early we can trade it, This was my first time trading the pattern and I made 18% profit

Knowing what I now know today I could have traded the zigzag corrective wave as well for more profit. This type of corrective wave is dominant in coins with strong fundamentals and when observed is a very high percentage trade. We smacked down right on the closest support and came back up.

these corrective wave patterns are usually followed by an upward corrective pattern as can be observed bellow

These patterns are also highly probably because I think bots may have been manipulating the price idk lol

Now here is the decision. do we get a wave 5? This is up to discretion but wave 5 would be highly likely for coins with good fundamentals. We can also check the price oscilator. Take the fib retracemetn from wave3 and see if the PPO remains within .0 and -1.4. This is a signal which i picked up off of youtube. but apparently from what ive seen it works as long as the retracement of wave 4 is short.

So we can top up and wave 5 will usually end at 1.618 the length of wave 4.

Since 1-5 are complete we can assume a corrective structure will form. so it would probably be good to get out at the top and wait for the following moves. We can confirm the top by checking the RSI. Even if it isnt it is still better to lock up some profits than waking up the next day seeing all red, but that shouldnt worry you because as long as there is hype and only good news the coin should come back up again.

We can observe another zig zag corrective structure in the upwards direction. I took my trade from b to c. C is usually 1.61 the length of A. Here is what I think the following correction could look like, I will be updating on the progress, But A is looks like a good entry point and it is worth risking some profits for the leg up to B. Would sell all and look for an entry into C, because we can get an impulse either upwards or downwards.most likely downwards since we have completed a full cycle however you never know. It would be worth to set a string stop loss risking a little profits to get the big upwards move if it comes

OmiseGo Case Study

Here we have OmiseGo the final pattern, has not yet confirmed however

We have omise go a hyped up coin with strong fundamentals it could have the same outcome as NEO. And we have confirmed a wave 1 and 2. So can we trade the wave 5?

Here we can see the current structure which has formed we can trade white V to A since we have lined up with a channel. The first big wave is an impulse so there are two potential trades to be made on the following corrective structures ABC. If we were in the trade prior or if we are looking we can top up our position. Simplistically we can look for a zigzag followup. We however dont see it. Since the corrective structure started with an impulse we would be looking for another impulse after the retracement. However we get another corrective structure. We could potentially be getting a corrective flat. These patterns are quite common and we can make another trade risking profits using a string stop loss. For the corrective flat the upcoming impulse wave should end parallel to wave A. There we can look to exit and for signs that the trend is going to terminate. OmiseGo has not been confirmed yet bu the price action looks to be dominated by buyers with a decrease in volume. This would tend to make me believe that with more seller action in a market with a low amount of buyers that we would obtain an impulse to the downside

TENX case Study
This looks like a truncated 5th pattern similar to the one which was shown by NEO. we have previously identified a wave 1 and wave 3. The pattern indicates that a wave 5 is likely in the coming days. This can be confirmed by the volume and the price oscillator. It is a very high reward trade worth the risk. will be updating how the trade goes In 2 hours there should be a decision. The coin has great fundamentals and a good following. For it to make a big move we need 450 million dollars. But what we need to rememeber is that the market cap is just eh last purchased price multiplied by the number of coins and does not actually indicate how much is spent so it could be a lot less required for that move upwards