● where as eSIX indicator made higher-high levels signaling positive divergence and a potential reversal in its downtrend. From April to mid-May, TLT also formed an ABC Bullish pattern. The confluence of TLT's double bottom pattern (weekly) and ABC Bullish pattern with a strong positive divergence signaled a long trade opportunity. ABC trade entry was at $121.25 with a stop below $119.9 and targets are $125-$126.5 and $130-$133. Patterns Confluence The confluence of technical indicators or patterns is a great way to validate trends and enter trades with confidence. When similar chart patterns (continuous or reversal) forming in multiple time-frames at the same point, traders may have found high probability trading opportunities. Here I present current 20-Year Treasury ETF (TLT) chart in multiple timeframes and various chart patterns to show the significance of confluence trading. A Double Bottom pattern is formed in TLT weekly timeframe from June 2015 to April 2017 with a long entry at 119 and stop at 116. The first target range is $134-$139. Also, notice an embedded Dragon Bullish pattern inside Double bottom pattern in January 2017. The third chart shows TLT (Daily) and a confluence of 5Wave (bullish) pattern weekly double bottom pattern (bullish) and ABC bullish patterns. A bullish divergence from the bottom of the price and a 5-Wave pattern showing higher-high and higher-low swings. 5-Wave patterns are similar to Elliott wave patterns with simple wave formations. A bullish price channel is drawn on the 5-Wave pattern to compute the target zones. The 5-Wave pattern target zone is set at the top of the trend-channel at $132$134. The second chart shows TLT daily chart along with a trend indicator eSIX. The trend indicator eSIX uses non-correlated components to derive the underlying trend. TLT made lower-low swing prices from January 2017 to April 2017,
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