HeWhoMustNotBeNamed

We do not need algorithms to spot the patterns when they are so clear. SeaPony bullish pattern already hit entry Falling wedge forming diagonal wave? Converging triangle ready for breakout.

Been thinking of building an algorithm for Wyckoff distribution detection. But, for now, just expressing my thoughts via this idea. While zigzag can be basic building block, using modified channels may help further in avoiding fakeouts. In this example, we can also see that OBV and RSI has divergence. Let's see if this results in a fakeout or continue to complete wyckoff distribution pattern.Took time. But, it did reach the intended target without hitting stop.

Zigzag is my favourite technical indicator. Usage of zigzag is often misunderstood. People try to find tops and bottoms and complain that it repaints. Well, zigzag is supposed to repaint its last pivot and it should not be used finding tops and bottoms to enter and exit at the right time. Then, how do we use zigzags?Main application of zigzag for me is pattern recognition. Just put zigzag on your chart and observe how easy it will become to identify patterns.The chart below shows double bottom - confirmed by divergence on lower pivots and continuation on higher pivots (price, strength and volume are all making higher high). Having said that, we need to keep in mind the expectations of double bottom pattern and settle for appropriate risk reward.

There are two contracting triangles on the chart. Both broken downside. Now, lets see the historical results of trades based on contracting triangles on bearish side for BTC on daily charthttps://www.tradingview.com/x/wBPtnus7/Based on this,Probability of price reaching 25300 before hitting 42700 is 30-33%Risk reward for the bearish side is 0.64Probability of price reaching 18903 before 50736 is 58-60%Risk reward for the bearish side is again 0.65Hence, the inverse of it will be stats for long side.Probability of price reaching 42700 before hitting 25300 is 67-70%Risk reward for the bullish side is 1/0.64 = 1.56Probability of price reaching 50736 before hitting 18903 is 58-60%Risk reward for the bullish side is 1/0.65 = 1.53Full chart below:https://www.tradingview.com/x/jpMfZg0A/Which side you are going to chose for short term speculation :)

Daily Chart - Bullish Sentiment Broken resistance Broken declining pivot high trendline Bullish Gartley pattern setup - but already have run up to target 1https://www.tradingview.com/x/dNddBuxs/Hourly Chart - Mildly bearish sentiment Seems to be rejecting under horizontal resistance High volume on previous extreme candle - may signify temporary exhaustion Bearish Harmonic Patterns in play Support ahead from both trend lines and horizontal support level.https://www.tradingview.com/x/9qBTkGLt/Trading planShort position followed by long position as shown in the chart below.https://www.tradingview.com/x/GyVsruFi/You can skip short position and just place a limit order for retest. Plan B - if short position hits stoplosshttps://www.tradingview.com/x/F2w3iPjB/Plan A failed. Switch to plan B, long position with stoploss set to 0.1685. Will revise as and when it makes new higher lows.Looking back, it was was really good plan. Only mistake was setting stoploss too tight - specially for short trade.Will refine this further :)

Really interesting scenario where hourly timeframe has complete opposite trend of dailyIf you look at hourly chart, Clear visible downtrend channel Price is just below upper trendline of downtrend channel Multiple bearish patterns suggesting downward price movementIf you look at daily chart, Clear visible uptrend channel Price just above lower trendline of uptrend channel Multiple bullish patterns suggesting upward price movement.How to play Go short based on lower timeframe. Wait for price to hit 79.80 which is target level based on multiple patterns and support line. Daily timeframe stoploss is around 78. Hence, this can be perfect reversal zone. Go long based on HTF once you take profit. Stop loss around 95.5 - If you hit stoploss shift to long trade based on HTF. Note that higher time frame position means wider stoploss - may need to adjust the risk accordingly.Scenarios Best case : Short position hits take profit level at 79.8 and price reverse to resume daily uptrend. Worst case : Hit short position stop 95.5 and then go on to hit long position stop at 78.8Lets see how this plays. I am going with a small risk.Low of 80 is hit and I will take it :)Stop-loss for long position updated to 92.5Stop hit on 92.5 - but with this both short and long trades ended up as success.Equation is still the same. We can attempt another long trade as both daily and hourly are near supporting trendline. SL: 88TP1: 96TP2: 100