Bitcoin Forum

Because some asked for one i make you one

a flag
http://yfrog.com/kearyyp
http://a.yfrog.com/img734/5127/aryy.th.png (http://twitter.yfrog.com/kearyyp)

a pennant
http://yfrog.com/kloprup
http://a.yfrog.com/img741/3406/opru.th.png (http://twitter.yfrog.com/kloprup)

http://yfrog.com/ockrpsp
http://a.yfrog.com/img876/1493/krps.th.png (http://twitter.yfrog.com/ockrpsp)

wedges
http://yfrog.com/mg68map
http://a.yfrog.com/img808/6938/68ma.th.png (http://twitter.yfrog.com/mg68map)



triangles
http://yfrog.com/oej4xqp
http://a.yfrog.com/img878/10/j4xq.th.png (http://twitter.yfrog.com/oej4xqp)

flags and pennants most of the time this are continuation pattens the market need to rest side ways after a strong rally  
so here on the EURUSD i expect some stuff like that
http://yfrog.com/mm3xavp
http://a.yfrog.com/img814/6627/3xav.th.png (http://twitter.yfrog.com/mm3xavp)

wedges most of the time are at extreme point at the end of a up trend or at bottom of a down trend, the trend fails to go frontward and boom reversal
http://yfrog.com/hwt8fjp
http://a.yfrog.com/img644/574/t8fj.th.png (http://twitter.yfrog.com/hwt8fjp)

triangles
there are many shapes and forms but are always 3 points on a line 2 on the other line and then break out and the next move usually is equal to triangle wide end measuring from triangle top

http://yfrog.com/ody5ajvp
http://a.yfrog.com/img877/202/y5ajv.th.png (http://twitter.yfrog.com/ody5ajvp)


are this more 100% accurate ? nope
are 100% predictable ? nope

later I will put some charts for bitcoin

My five cents.

Flags and pennants are found in middle of trend.

To be accurate, figures must fit rules:

- They must have a stick - strong, almost vertical bold move on high volume.
- They must have continuously decreasing volume from stick to the end of figure.
- flag trend and pennant appex direction MUST be in opposite to previous bold move direction!
- The bigger figure - the more accurate projection.

Projection - breakout point plus or minus stick height - it will probably continue previous bold move.

Thank you for this.

someone asked about posting a chart for bitcoin

this is one of many scenarios that can happen

each one should make its own analysis and stuff

http://yfrog.com/od4oqop
http://a.yfrog.com/img877/9493/4oqo.th.png (http://twitter.yfrog.com/od4oqop)


in this chart i went cheap and i did not bother to manually check L and H i added this study and does the job pretty well Market Structure MSL/MSH http://www.sierrachart.com/index.php?l=doc/doc_TechnicalStudiesReference.html#s212

another way to set that wedge lines rest on good spots is using a oscillator like (SS) Stochastic - Slow http://www.sierrachart.com/index.php?l=doc/doc_TechnicalStudiesReference.html#s22
the top wedge points are close to SS tops and lower points are are on SS dips

is this perfect ? nope

is just obama_not_bad.jpg  (http://lmgtfy.com/?q=obama+not+bad)

a short update on that flag, the flag did end a made a new flag/pennant that have to be resolved, this is perfect example of the continuation on flags , first image is 4h chart second image is 1h chart  
http://yfrog.com/kemopvp
http://a.yfrog.com/img734/4625/mopv.th.png (http://twitter.yfrog.com/kemopvp)

some one asked if there is room for a bullish move upwards, yes there is possible such a move and there is a rising wedge on the 500 000 volume chart for the current candle to complete there is needed for 100 000 volume and this candle can touch the upper wedge line if that dont happen then another 500 000 volume candle will start

http://yfrog.com/j2ejxop
http://a.yfrog.com/img686/4910/ejxo.png (http://twitter.yfrog.com/j2ejxop)

continuation on this, price broke above the range then did go down to retest the range lower support  went up broke resistance and after a retest it went up
http://yfrog.com/gyqk7wp
http://a.yfrog.com/img610/9409/qk7w.th.png (http://twitter.yfrog.com/gyqk7wp)

o more flags now :(

Btc also is doing a flag
http://yfrog.com/oe6k8sp
http://a.yfrog.com/img878/1286/6k8s.th.png (http://twitter.yfrog.com/oe6k8sp)

daily did close and confirmed the top line
the image is 4h old but will do
http://yfrog.com/ocu61pep
http://a.yfrog.com/img876/3847/u61pe.th.png (http://twitter.yfrog.com/ocu61pep)

a update on this is quite likely to get a triangle on that stick since bitcoin market love triangles
http://yfrog.com/nvtppap
http://a.yfrog.com/img859/7706/tppa.th.png (http://twitter.yfrog.com/nvtppap)

bearish my expectation

http://yfrog.com/nwpt5zfj
http://a.yfrog.com/img860/6103/pt5zf.th.jpg (http://twitter.yfrog.com/nwpt5zfj)

the expected pennant invalidated

http://bitcoincharts.com/charts/mtgoxUSD#rg10zigHourlyzczsg2013-01-19zeg2013-01-29ztgSzm1g10zm2g25zv

http://bitcoincharts.com/charts/chart.png?width=940&m=mtgoxUSD&SubmitButton=Draw&r=10&i=Hourly&c=1&s=2013-01-19&e=2013-01-29&Prev=&Next=&t=S&b=&a1=&m1=10&a2=&m2=25&x=0&i1=&i2=&i3=&i4=&v=1&cv=0&ps=0&l=0&p=0&
Doesn't that look like a pennant?

@zby
it looks like on but not what is expected my expectation did have a flat top and shorted time frame
you can see that this is more bullish since it lasted longer and the increase in price it was bigger, this reflect more the market sentiment
http://yfrog.com/kj36akp
http://a.yfrog.com/img739/1563/36ak.th.png (http://twitter.yfrog.com/kj36akp)


does that make sense for you ?

Sure - I was not really referring to your previous post - just asking if it now does not look like a pennant by any chance :)