As a trend trader I am always looking at markets that well... trend. This means that I study trending markets and parabolic runs extensively. Here is one pattern that I see time and time again. I call it the "MONEY MAKER M" it could be more realistically called the Market Maker M. Essentially on any timeframe on any chart if a porportionate series of higher highs and higher lows present themself after consolidation .. then be prepared for an immediate parabolic move. I am sure there are many reasons for this and that there are other acclaimed explanations for this pattern. Yet, in scanning charts everytime i see this i immediately expect it to be a long with low risk and high reward possibility.
Komen
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pattern is only invalidated with trading action below previous low... so $17 or so.
How do you spot these, other than just happening across them?
SnarkyPuppy
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@theoneforbc, no sure. these seem to be most successful when you don't actively look for them but they are so blatant that they jump off the page even though you're not trying to find it.
flyfreebaby
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thanks for the effort! gonna keep following you to see whatsup with the MMM pattern. do you look for confirmation in the Volume indicator or any other indicators?
SnarkyPuppy
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@flyfreebaby, Depends. Confluence is always good. I have several different trading algos that i could refer to for entry points. But in a crypto bull market I just let the market do the work. Use position size to just buy and hold without worrying about it too much. Also, parabolic charts tend not to follow technical analysis as well as consolidation.