SHTP - Simple Hidden Trading Patterns

Dear Traders,

I wanted to show you some of the trading techniques I have figured out myself over the years (+10yrs) and I use most of these to support my trades and to set up proper TP and reversal areas. I will post some seperate posts to highlight all I have and maybe we can find more hidden clues of the market.

I have to mention one very important disclaimer, all I show, has ZERO theoritical background, which means I have not seen a single book or anything that would back my ideas, only the fact that I have tested these on many charts, many different time frames and both stock and FX charts, as well as cryptos. And they just work fine. Some can be used even for price prediction, but more on that later.

Let's get to it, and I will comment the rest later. I will slowly populate the thread.

1# Technique - Finding the "real" trend lines

Let me give you a great example here with the following chart. GBPUSD W1

Some would set up their trend line on this pair as follows:


However, I see this completely the otherway around:



To me the following happens:

1: First trend line
2: Second trend line appears
3. Third trend line comes in
4. Third trend line breaks, without having a proper uptrend formed under it, there is sign of an actual multi swing structure of higher lows. This means to me that this is a fake breakout. Anywhere above the trendline breaking point, is an absolute good place to look for shorts as the TP is granted as the lowest point in the Third trendline. marked with the Orange circle.
After getting a new low, I can setup my channel there, by having my first major reference point in the trend. That is where I am to close my shorts as its a likely palce for correction.
5. Marked are for prepping our shorts.
6. Is an area where the pair is oversold, so if you are still in the trade its a good place to start thinking of closures and plan reversals.
7. Is the first uptrend that forms, and it actually breaks, which means that trend has failed, and technically the current downtrend should make a new LOW, which we see that it fails to do as the very next swing makes a new high.
8. Marks the new "fake" uptrend
9. Is the point where the downtrend ended.

To me the above analisys means that the point 7. is the key to me. That tells me that what ever upmove we have is a failure, and eventually the price needs to correct it back!, so technically anywhere above the point where the actual downtrend has ended, is already a good place to start looking for entries.

About that I know its like, "DUUUUDE ITS BEEN STILL GOING UP FOR WEEKS OR MONTHS..." As it can do that, since the "fake" uptrend, is still a push for newer highs. But it holds the key, that we already have a point where the upcoming downtrend will push the price.

The next screenshot shows, how this played out:



10. is the place of the "error" that needed correction
11. Is the new low that we were waiting for.

I will post the very next example on this chart, and I hope that will help you realize the power of this information:





The very next uptrend failed as well, marked with the orange circle. And I would check the price levels and the dates there.
The error happened in 1985!!

And Now look at how it has been corrected and in what way:


This is the Hourly chart on the same pair: Sept 26 2022 - 37 years later!!! The pair corrected the missing low, only with 1 candle!

To me this means that any errors that happened on the pair, until now, will now be started to be corrected back. So I would say, the long fait of this pair is that the GBPUSD will go northbound.

A Qucik recap of what happened with this pair. As some of you look for a 1/3 vs 2/3 ratio:



Basically anywhere in the red zone, which is the breaking point of that first fake trend, is that ratio.

Now I Know that this is a terribly long period. But this works on smaller time frames too. The reason why I like to do this on the weekly chart is to give me an overview on where we are, which is the main direction, and from there I can capture corrections on the daily chart, and ever smaller moves on the houry.

It is always wise, to look back the charts for its absolute lows and highs when trying to look up the historical trends.

I will be coming with another interesting find, using the same chart. See you in the next comment!

#2 - Technique - Finding my own channels

A lof of people use channels to see where the price is going. I have two methods. One that I rely on as I think this is too commonly used as its impossible to ignore its effect on the pair. The other is that one I found to be extremely interesting.

For this you don't need to have the absolute High or Low to be marked, as this is more like an always useful indicator. The way its meant to be set is somewhat easy, but its also easy to miss it. Here is a good example:





1. The trend line has been built by connecting the two LOWs
2. I have added as a "test" to the first HIGH
3. I have added it to the first major resistance area, hence called the "turner"

The rest are overbought markers, where I believe the price is liekly to reverse to the "turner"
One improtant piece that I want to add is, that the trend is "LIVE" as long as the overbought, the extra markers 4.5.6. needs to be always be broken. Which means, if the price makes a HH in a full swing and it does not break the trend line eventually, it is likely that the trend has just exhausted.

7. Is the new HH after multiple swings and corrections, that high could not last long enough to break the last marker and started to fall back, eventually causing the trend to end.

BUT, this is just a quick review, of that swing, but what is the hidden info here? Let me show you with this chart:




I have intentionally scrolled further in time and used the same trend lines and added them the same way to the chart, as you see, its pretty much the same. New HH at the end with no further break on the marker. The Turner has been touched pretty often. The Reason why my TOP marker is so far away, is because I wanted to wait unil we get out of that one major down swing, until that its just sideways move to me.

A last example on the UPTREND Power markers:


Here we don't have the exhaustion HH, but the way how to find the TOP and Turner trend line is very nicely shown. So when you get the first LL just at the TURNER Text, that is the indication, that the trend got to a resitance. That is where I place my TURNER marker. The TOP will be the HH until that point.

Why the above is useful.

1. If you find this line that just fits everywhere on the chart in the past, will likely to work for you in the future. As you see in the very last example. The Price eventually turned back to the MAIN marker. Which is my main "trend" or limit of my "channel"
2. Theoritically every uptrend ends when its trend line is broken. So when we were so over bought in our last example, any of those dotted areas were a good place to start thinking on selling as the reward area was so far away south, that our trade ratio was pretty rewarding.
3. These markers can be used for prece prediction. Forexample whenever the price returned to the TURNER marker, we had a good chance, considering the fact that we are in an uptrend that the price will exceed the TOP marker and go until the last overbought marker and touch it. and whenever it did, we had a good chance to sell until we got back to the turner.

In my next comment I will try to give you examples, on how to use these markers not just for one trend but showing both up and down trend markers. See you in the next comment!

#3 - The MESH technique

I have seen a similiar technique using the GANN GRID, which is not the same as what I have as that is a simmetric grid, where my mesh is somewhat flexible and always changing based on the current trend.

Same chart as before and I have found a good spot to setup my DOWN trend markers



Here we have a nice example of an exhausted trend that eventually turned.
But let's focus on building up our mesh.

I have used the previous uptrend marker and the newly created downtrend marker, to try to find when my downtrend is truly starting:



In this example, I have removed the up markers jsut for now, so you see how I try to use the down markers. When I start to get my first LL, I tend to think, what if this is it, this is the down trend I was waiting for? So I wait until I get to the first resistance of this "possible new downtrend" so I can set up my TURNER marker for it. That should be the place where once touched it makes a new LL, however as you can see, the orange marking shows that the trend ends before it makes new LL. This means that we can expect a contiunuation of our major uptrend. Which will last as long as we don't get to another new LL.
Here is the next time we had a new LL




Same happened as just before. So let's see what happens when the Exhausted HH shows up.



Just look at how the previously used DOWN markers are matching on the chart, and how the price reacts. As you see the possible turner, appears, and we make a newer LL before breaking our MAIN Marker. From there the trend is LIVE! Meaning it will break the previous Uptrend, so it has to break its MAIN Marker. Which was still pretty far away, so there was room for profit, and as long as it is visible on the screen the oversold markers are just being created over and over again. Showing that the trend is LIVE and has life in it.

Let's see how it unfolds.



As you can see using the same uptrend markers, I have found the confirmation and have a new trend setup, with all of its main features, before the downtrend finally ended. At that part where the break happens, we can aim towards the downtrends MAIN marker, and that is a pretty nice profit as well.

Let's wrap up how this ended, and what is the current status of this pair:



Right now, there is a possible MAIN Marker set for a possible down trend, we need a resistance on that current down move to see if we can setup a Possible TURNER marker, once that is set, and we get a BREAK, we can conclude that the down trend has established. However, if the current BLUE line gets crossed before that, we will have a new HH in this trend and possible new TP 1.32000

I hope the explanaition was clear enough to catch it. I am happy to show further pairs and different examples.

See you in the next comment!

#4 - KEY Leveles, is it really that easy to find these? I think yes!

I know many people use indicators to find pivot points or fibonachi or whatever methods to say what level is a support or resistance to a certain pair. I think there is way easier method to set it up for your self.

Let's look at this example. What you will need is to pick a pair, setup a HUGE timeframe such as like a 6Months long one.



Some people just forget the importance of a sideways move, and they don't realize, that we can be in a major sideways move even now, without us knowing unless we take a look at the greater picture.

The above image shows that there has been couple of candles and smaller inter swings while we were actually still within one major swing!

If you set up a Fibo just to see the 50% line, you can get a huge advantage. Thinka bout it as a short term pivot point, since we are in a long 6M time frame, on a daily time frame, we can identifiy smaller trends, which are likely to take us to the middle of the sideways move. I will leave the Fibo, but change to a daily time frame.

Before getting there I will just add another screenshot to show you, where I considered that the sideways move has started, and at that point, I am ready to setup my fibo!


Now look at the daily:



Just look at how nicly the Fibo sits on the daily chart!

How is this usefult to us? EASY! If you find a chart like this, and you can setup that white marker jsut the way I did, - having two different colour candles after the first correctional swing, that is the marker for an sideways move - knowing that you will already have all the pivot points you need, and the 50% line which will be our key level at all times as long as we are in a sideways move. Have a look at how many times it was reaching for the 50%. So when you are at the daily chart, you can set up your smaller time frame trends, which when they fail they will likely to make your price move back towards the 50% line, giving you a huge advantage getting some profit.

I Like to think about this as a helper when making decisions as it is good to know that we are in a sideways move, and what are our boundries. I hope this explanation was easy to follow.

See you in the next comment

I would like to add one more thing to all the previous techniques. I don't use MA, RSI, or any other indicator! My only tools are the trendlines and the fibo. This makes my charts pretty clean, and I can concentrate on the price itself, as that is the most accurate indicator. Please feel free to play around your charts and post your thoughts. I would ask you to keep the chart as cleen as I did, using only trendlines and fibo's. So we can keep the thread readable. Thanks

Currently I am watching the USDHUF



This is a simple chart, I have a bit more complex one with diff timeframe stats, but sofar this sub downtrend has ended based on my tool set, and I am in since 356, and I plan to stay as long as we get to the TrendLine, To be fair, I stongly belive that my theory is correct about this price and it will eventually make a ATH, so I might take a big profit at the MAIN Marker and let the rest go just to validate my analysis. So far its pretty good, so fingers crossed!

Thanks for sharing your approach.
Wondering if the technique is objective or subjective.
Basically, learned the method, can 2 different people reach the same conclusion?
Cheers

GANN Grid is based on previous measurements of Periods, Waves or Major starting points. the result will give you future major levels. nothing random in GANN/Fibonacci methods.





cheers,

you can use this indicator for your strategy

I would say so, but I know it takes practice. The best is always to setup these channels on a daily and aon a weekly time frame, so you get the overall picture, the lower timeframes are a bit more tricky, as I tend to find my self realiying, that sometimes on the 1H time frame, the were first set of LH or HL can set up the full trend, and it usually matches up with the daily's trend line. I will try to post some more examples later.

Pretty Interesting I agree, I used to look at these after I realiyed my ideas corelate with the GANN tools, just the chart looks really busy after setting up some of these indicators, and I am just not sure if the relations are relly linked to these indicators or just coincidence.

Please feel free to show some charts on how would you make a trading decisions based on these GANN tools.

I know this one is STOCK - TESLA



But is really interesting to see how these levels work out. I set the STOP LOSS to the candle where we broke the turner, and had set the actual value on the Trend Line and set the TP to be the oversold marker at the bottom until they touched.

As you can see the 3rd one was closing above the MAIN Marker, and it closed out, so that would be a loss trade. With the ration of 9.00 I think it would still worth the risk to place it, If we are luck and realize that the canlde broke our down trend, we should immediatly close out the trade or the brave ones can wait for some correction to minimize the loss and aim for the upcomign newer tops as the trend seems to be changed.

GANN and Fibonacci are measuring schools, it's called navigation more than busy, but at the same time you are in control of the measurements you need.
GANN defaults in Price/Time/Angles divisions are 1/8's , but if the ranges are too tight, you can use 1/4's, or if it's too wide you can use 1/16's. so measuring is flexible.

measuring previous periods give you fixed levels of 3 squared factors horizontal/vertical/angle and they all have percentages, so it come down to simple S/R compared with the past.
understanding price action like Dow Rules (HHHL-LLLH) you will follow trends until you reach strong major levels. breaking the trend will be confirmed by breaking previous S/R.

this is GU measurements for Sep to have levels of Oct, you can see previous strong S/R levels and Dow readings of LLLH, your decision is based on what you read in direction and breakouts.




cheers,

btw, measuring need a learning curve and it's not crucial to trading(might be for swings and long terms). most imoprtant, traders should use what they understand to help them decide trade.
but understanding Dow Rules is important for every trader
https://www.forexfactory.com/thread/...0#post14585960

The charts shown by KWT4X are essentially higher-level "roadmaps" that give direction. Using Gann-based Time/Price considerations, you can use tools in the lower timeframes like "Gann Bands" that show price over time with breakout structure cues. I developed an indicator that allows these to be created instantly over the pair(s) you trade. So, there are many ways to actually trade the Gann information and Bands are just one of them.

#5 - FakeOut - BreakOut and False trends

So in this example I will show you something I have been watching for a long time now, and maybe I understand it now enough that I can actually describe what you will see in the following screenshots.

I went back, in time, to find the absolute low of the USDJPY to see what its still in a pretty decent uptrend.



And we will see how the fake down trends could have been found and traded.



In this example I wanted to highlight that to me a swing is more like, a full movement, even if it has 1 red candle here and there, the form must have that "S" shape, that we have a clear structure for both turning upwards and then turning downwards. (min 2 candles)
So the drawable down trend has broken, and we got a confirmation with the swing break. This one has not much to offer, but its a good example for a swing



So here is a great piece, as this has lasted for pretty long. The down trend has started and been going on for a while. To me as long as the main trend line does not break, we are likely to go for the up trend line shown in the first screenshot. Any break before that is an indication that this is a false down trend, and the up-trend will continue with an ATH.
The current bottom of this trend ended at 99.8 - it will be a key info!



A down-trend brake has happened, which is a clear indication, that down trend could not last long enough to make the uptrend break, so from here we are on for an ATH, which was at 125!
However, I would need a confirmation to go for a buy, which we don't have yet. I will leave a marker for it:



So here is the actual brake. I get a break on my marker at 112, and as I see the price did not fall below the 99.8 which was the lowest point of the down-trend. This is a double confirmation that this down trend can't make further moves. Hence it is a pretty safe place to buy at the marker.




We see that it has eventually ended up with an ATH. But lets continue as there is more for this pair.



With this last screenshot, we are ending up at today's candle. As the previous fake down trend has left has with an ATH, which is now has been touched, and we are likely to close above it, atleast with one candle.

So this is the basic Idea on fake down trends. But I will try to grab a better example on how to keep up with the fake trends.

More Examples on USDGBP



Here we see that the up-trend gets broken pretty early in the game but it keeps making a newer high, and with that it becomes a new false up-trend. With this in mind, in the long run, which can be really really long.... we tend to expect the price on this pair to come back to the areas of the original up trend, to the 0.49 Level.

Of-course for that we will have a long way to go. Let's see the next major event.



The new false trend line gets, broken, but without a continueation. This is a "good" option for us to trade, as this is a good sign that this is a false break, which eventually makes a new ATH on an up-trend. We will have to wait for the new ATH before we can draw our new false-trend line.



New ATH and new trend line!




Here the last screenshot shows, that there has been a few fake tries to go for a down trend, but all failed, and prooved zones for possible buys. The aim now is a new ATH on this pair, however when the green trendline gets broken, and we get a continuation for the down moves, be prepared for a pretty intense and possibly long term down trend towards the 0.49 levels

Just some Update,

It is really nice to see that huge GAP that simply just Skipped the turner line and the original bottom marker of the trend has kept the price and made it bounce back. The Good Sell Zone worked pretty well.




https://www.forexfactory.com/attachm...9?d=1696226058

Hi! I just set grid Gunn. How u can see - there are coincidences. What do you think: how can this be used in trading? Grid starts October 4, 2023.

Intresting, I would say, keep those lines manually, which marks the lash HH So that green down trend line, and leave the RED that looks like a median line, and the last one after the orange, that would mark your channel. Anything out of this down channel, is a potential action maker. Like if you are below the orange-green line that is a good exit point or an entry make as to return towards the median. Above the median can be a good area for sell. However I would wait for a confirmation when a green uptrend line gets broken. You can use the blue lines as potential targets as for a down trend we are waiting for newer and newer LLs. So In Theory those could be your target levels.

Uptrend would be considered for me when the First green line that we have at the HH gets broken.