Sensorium (SENSO) / BTC - A rewarding candlestick pattern
Atualizado
The pattern of candles highlighted is a favourite of mine. You don’t often see such a clear example in the charts, but when you do..
If you’re new to trading / active investing, this is one to put in your notebook. No matter the chart study, stocks, crypto, price of fish cakes in Hong Kong, it works every time on all time scales, the weekly is partially powerful.
On the above weekly chart a battle of psychology between bears and bulls is playing out. Why is this pattern significant?
Candle by candle starting from ‘1st candle’
1) The bears stepped in, they pushed price down closing the week lower than it began with significant pressure, hence red candle.
2) The bears stepped in again and closed price action lower than the week began. But two things have changed from the previous week:
2a) The wick is lower, indicating sellers are weakening.
2b) The body of the candle is thinner. This tells that despite all the selling pressure of the bears, the bulls matched it.
3) At this point you start to see something significant. A very thin body with a long wick above. This candle is called a ‘morning star’ and is confirmed with a ‘green candle’ in the following trading session, which we have. The psychology here is the bulls entered deep into the bears territory with not as much resistance as the previous session.
4) The first green candle. A ‘indecision candle’. The bears are confirmed ‘exhausted’, bulls closed price action higher than the previous trading session.
5) This is where is becomes mega interesting. The buying pressure soaking up the bears sell orders has not gone away. So what happens next when the bulls step in again without the selling pressure? Kaboom.
Print it out and hang it up somewhere!
WW
Is there any examples? Sure:
Here is a weekly dollar chart on something called Dragonchain:
And again the AAVA dollar chart before going on a 200000% bull run.
If you’re new to trading / active investing, this is one to put in your notebook. No matter the chart study, stocks, crypto, price of fish cakes in Hong Kong, it works every time on all time scales, the weekly is partially powerful.
On the above weekly chart a battle of psychology between bears and bulls is playing out. Why is this pattern significant?
Candle by candle starting from ‘1st candle’
1) The bears stepped in, they pushed price down closing the week lower than it began with significant pressure, hence red candle.
2) The bears stepped in again and closed price action lower than the week began. But two things have changed from the previous week:
2a) The wick is lower, indicating sellers are weakening.
2b) The body of the candle is thinner. This tells that despite all the selling pressure of the bears, the bulls matched it.
3) At this point you start to see something significant. A very thin body with a long wick above. This candle is called a ‘morning star’ and is confirmed with a ‘green candle’ in the following trading session, which we have. The psychology here is the bulls entered deep into the bears territory with not as much resistance as the previous session.
4) The first green candle. A ‘indecision candle’. The bears are confirmed ‘exhausted’, bulls closed price action higher than the previous trading session.
5) This is where is becomes mega interesting. The buying pressure soaking up the bears sell orders has not gone away. So what happens next when the bulls step in again without the selling pressure? Kaboom.
Print it out and hang it up somewhere!
WW
Is there any examples? Sure:
Here is a weekly dollar chart on something called Dragonchain:
And again the AAVA dollar chart before going on a 200000% bull run.
Nota
Already you can see the impact once sellers are exhausted. The next few candles are likely to be very energetic.If you see that formation elsewhere, post it below for all to see! Thanks.
WW
Trade fechado manualmente
You can probably now see why I like this pattern, from a risk / reward perspective.On the weekly chart below we can see sellers made one final attempt to break the pattern, but it was swiftly rejected. Strong upside moves can now be expected in the months ahead.
Nota
I rest my case.Just a little over 200% so far and this is just beginning, purple circle below explains why.
There's a few more of those weekly patterns emerging on other alts, do you know which ones?
Nota
A weekly close, yes 7 days from now, on or above 26k Sats will be more bullish than you can imagine.Remember how this whole formation began, sellers are exhausted, upward resistance is weak. Look left.
Nota
Explanation on looking left above, look at the last huge green candle earlier in the year. The sellers are out of ammunition. It is in part why I like these formations so much.Nota
Spent Sunday afternoon looking through every alt/BTC traded pair the formation discussed above. Currently seven were identified in the market at this time.1/7 - Bao Finance (BAO)
Actually already published this idea, the dollar version of it. But here is the formation:
Nota
2/7 (should have been 1/7!) - Drum roll..... Automata Network (ATA)A perfect set up, sellers are exhausted as the weekly volume continues to increase. I'll publish the dollar chart shortly, it is about to 4x easily.
Nota
3/7 Maker Nota
4/7 - Mirror protocol Credit to susta
Nota
You’ll recall perhaps a few posts back about what was said should price action close above 2.6k sats? Have a look at the candle currently printing for the weekly. If this candle closes like this today (Sunday 14th of November), it will be widely bullish. Why? Sellers pushed price action down deep and it was swiftly eaten up by the buyers. Plus price action has no more resistance above this level, price discovery modus.The reversal pattern has played out beautifully. It is now reaching a stage where sellers at the bottom rotate back in together with the buyers who started at the bottom.
Nota
Bitcoin on the weekly. Have a look through the charts, perhaps your favourite alt-token is printing similar?Nota
SENSO BTC pair, de-ja-vu all over againNota
Text book example of the reversal pattern playing out here on the 10-day FIDA Is it.. yes FIDA/BTC pair. See how far the wick went with volume before sellers stepped in? Textbook.Nota
Do you remember the note on this wonderful reversal pattern signal?If you look you will find various BTC pairs printing this exact formation. Not many, but some..
2-day chart YGG/BTC
Nota
Noch eineweekly LOOM / BTC
Nota
This is a ridiculously powerful candlestick pattern. Don't know why? Look up and read this idea from beginning. Then hit the like button as you wonder why no one told you about this beautiful pattern before now.FXS on the monthly
BTC
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.