Bullish CrabThe Crab is another reversal pattern that allows you to enter the market at extreme highs or lows. Peak 2 is lower than peak one, unlike the Cypher or the Shark. Valley 2 of the crooked M is lower than valley 1, which is similar to the Butterfly. The Crab is very similar to the Butterfly pattern but the final C-D leg makes a deeper 161.8% extension of the initial X-A leg and the pattern's inner retracements are also slightly different. The Butterfly retraces .786 of the XA leg and CD should ideally land at the 1.272.
The bands are contracting suggesting a move soon one way or the other. Price is being squeezed similar to when price hits the nose of a triangle. These bands are set on 2 standard deviations. There is no way to know for sure which way price will break. Some may place a limit buy order over the top band to ensure it breaks to the upside.
The bands expand when volatility is high and contract during price consolidation.
Bollinger Bands are comprised of three lines – the upper, middle, and lower band. The middle band is a moving average, and its parameters are chosen by the trader. The upper and lower bands are positioned on either side of the moving average band. The trader decides the number of standard deviations they need the volatility indicator set at. The number of standard deviations, in turn, determines the distance between the middle band and the upper and lower bands. The position of these bands provides information on how strong the trend is and the potential high and low price levels that may be expected in the immediate future.
Bollinger bands can also give you overbought (above top band) and oversold signals.
The Alligator indicator uses three smoothed moving averages, set at five, eight, and 13 periods, which are all Fibonacci numbers. The initial smoothed average is calculated with a simple moving average (SMA), adding additional smoothed averages that slow down indicator turns. Tangling of the moving averages suggest the alligator is sleeping, but the gator will awaken and move one direction or the other.
No recommendation
Bullish engulfing candle at this moment on daily time frame.
If you do not have rules, then every move you make can be a mistake, yet you may never know it until it is too late.
