You need the right resources to make profit. Here's a technical analysis course and an answer to a question we've all been asking: Is this the end of the bull market?
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Welcome to Part 4 of our Candlestick Patterns Course.
GOAL: Start identifying Continuation Patterns
EFFORT: 5-10 mins to get started with each pattern
REWARD: Potentially unlimited upside if you can master a pattern
Missed Part 1, Part 2, and Part 3? No Problem. Check them out here 👉 Part 1: Candlesticks 101, Part 2: Bullish Reversal Patterns and Part 3: Bearish Reversal Patterns. Part 4 today will focus on Continuation patterns.
💥 To receive our Candlestick Pattern Cheat Sheet tomorrow, with all the patterns included on the Course drawn out, make sure you’re on our free email list👇
♦️ The Chart is a Battlefield
Let’s recall our battle analogy from Part 1:
Candlestick charts show two armies warging war.
The bodies of the white candles represent the bull army and the bodies of the purple candles represent the bear army.
The chart represents the battlefield.
Both armies are trying to get into each other’s territory.
Wicks show failed attempts to get into army territory.
Remember, if you’d like to Koroush guide you through this analogy on video, click this link.
Today, we are going to look at examples of Continuation Patterns. Or, in other words, situations where the current trend is likely to continue after a brief period of consolidation. This is in contrast to reversal patterns wherein the current trend is likely to reverse after consolidation.
♦️ 2 Continuation Patterns
🔍 HOW TO IDENTIFY A FALLING THREE METHODS: This is a bearish continuation pattern in which price action is in a downtrend, consolidates briefly, and then continues a downtrend. More specifically, the pattern consists of a bearish candle, followed by three consecutive bullish small-body candles during a period of consolidation, followed by a strong bearish candle before continuing the downtrend.
⚔️ WHAT IT MEANS IN BATTLE: Given this pattern begins during a downtrend, it signifies that the bear army is in full control of the battlefield. Bears began advancing aggressively into bull territory during the first candle. The bull army tries to fight back, however because the bodies of each of the three consecutive candles are small, it symbolises that the bull army was unable to push into bear territory in any meaningful way. On the subsequent candle, the bear army comes out strong and pushes back far into bull territory, therefore resuming the downtrend.
🔍 HOW TO IDENTIFY A RISING THREE METHODS: This is a bullish continuation pattern in which price action is in a uptrend, consolidates briefly, and then continues a uptrend. More specifically, the pattern consists of a bullish candle, followed by three consecutive bearish small-body candles during a period of consolidation, followed by a strong bullish candle before continuing the uptrend.
⚔️ WHAT IT MEANS IN BATTLE: Given this pattern begins during an uptrend, it signifies that the bull army is in full control of the battlefield. Bulls began advancing aggressively into bear territory during the first candle. The bear army tries to fight back, however because the bodies of each of the three consecutive candles are small, it symbolises that the bear army was unable to push into bull territory in any meaningful way. On the subsequent candle, the bull army comes out strong and pushes back far into bear territory, therefore resuming the uptrend.
♦️ Introducing Dojis
🔍 HOW TO IDENTIFY A DOJI: A Doji forms when the open and close are the same (or very close to each other). The price can move above and below the open but eventually closes at or near the open. Technically speaking, a Doji occurs when the open and close are the exact same. As such, an exact Doji is rare. If the open and close aren’t the same but instead very close to each other, this is described as a spinning top. A spinning top is often used interchangeably with the Doji.
⚔️ WHAT IT MEANS IN BATTLE: A Doji indicates heightened tension between the bull and bear army. An indecision point between buying and selling forces. Depending on where the line of the open/close falls, a Doji can convey different messages in battle.
Gravestone Doji ➡️ bearish reversal candle with a long upper wick and the open/close near the low.
Long-legged Doji ➡️ indecisive candle with both a lower and upper wick, and the open/close near the midpoint.
Dragonfly Doji ➡️ either bullish or bearish candle (depending on context) with a long lower wick and the open/close near the high.
♦️ Concluding Remarks
And thus concludes Part 4 on Candlestick Patterns Guide. That brings us to the end of the course. Congratulations for making it this far! Don’t worry about drawing the charts or images from this week. We’ll share a PDF Cheat Sheet with all patterns discussed in the course tomorrow!
💥 If you’re serious about building wealth through crypto and want to receive this cheat sheet, be sure to join 24,000+ others in the Market Meditations community 👇
What Coin is That?
Can you guess which coin this is based on its price tied to BNB? We’ll give you a clue… This coin had a huge hack at around 1am BSTtoday and the hacker made off with over $200 Million in assets.
Is This the End of the Bull Market? with Joseph Young
CLICK HERE TO LISTEN 🎧 Joseph Young has recently joined Hashed, the biggest crypto venture capital firm in Asia. He is also a contributor to top crypto publications including Cointelegraph and Forbes.
At Market Meditations, we firmly believe that crypto should be accessible to everyone. That’s why we are delighted to be partnered with Exodus, one of the top cryptocurrency wallet providers. The Exodus wallet is free and you can use our link to download it on your computer or phone. Allowing you to easily store, trade and earn interest on your crypto from one place. Passive income opportunities are particularly attractive when market conditions are volatile. Did you know you can use Exodus to earn interest through staking? We provide a step by step tutorial in our Staking Guide.
Yield farming aggregator and Smart Chain DeFi protocol PancakeBunny suffered a flash loan attack which caused the value of its token to crash to virtually $0 in minutes. It generated over $1 billion in losses, one of the largest exploits in crypto to date. Let’s summarise what happened with PancakeBunny and discuss what you can do to protect yourself if you are yield farming.
The hacker leveraged the PancakeSwap DEX, the leading DEX on Binance Smart Chain, to borrow a massive amount of BNB. They then manipulated the prices of both USDT/BNB and BUNNY/BNB in a successful effort to acquire a large amount of BUNNY. At this point, the hacker held large amounts of BUNNY and had a large debt to repay in BNB. So they dumped BUNNY, causing its price to plummet, and paid back the BNB debt, profiting massively on the difference, which some analysts suggest is close to $3 million. What’s more, the hacker left a rabbit-themed pun on the transaction note: “Aren’t Flashloans Earitating.” You can track the transactions here.
We must never take security for granted in the crypto industry. With the ability to remove middlemen, we also inadvertently remove people and processes that have acted as a safeguard against attack vectors in centralised finance. We’re proponents of leveraging passive income strategies to build wealth, but attacks like this remind everyone that this doesn’t come without danger. There are a few things you can do to protect yourself if you want to begin yield farming. First, diversify your yield farming strategy by utilising different protocols and make sure every protocol you’re using has been audited. It’s not wise to yield farm with 100% of your portfolio, as this is a high risk activity.
It’s also wise to make sure the rest of your security is up to date, as it’s very easy for someone with malicious intent to hack into your systems if you fail to set up proper security. Defence softwares and VPNs are just the beginning, so make sure to check out our FREE 9 Step Essential Cryptocurrency Security Guide. Remember, yield farming is not the only way to earn passive income in crypto, so make sure to check out our full Passive Income Guide to see other things you can do to build wealth.
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