February 12, 2021 |James Messi
Signals by Beaxy Exchange: Understanding the Chart Patterns
Beaxy Exchange gives you access to exclusive trading tools that do all of the dirty work for you. Signals by Beaxy Exchange have an impressive 70% win-rate and are available for free when you create your Beaxy account.
Signals by Beaxy Exchange
Beaxy’s AI-powered Signals are based on aggregated market data that is used to prepopulate your chart with professional-grade technical analysis. These machine-generated Signals remove the pain and error that stem from manual technical analysis. While trading on Beaxy Exchange, you can access Signals based on statistical models that can be used to seamlessly find accurate support and resistance levels, rising wedges, channels, Fibonacci retracements and many more strategies.
Signals in Action
To leverage AI-powered Signals on Beaxy Exchange, log into the platform and click on your active trading pair. The numbers covered in a blue circle indicate the number of Signals that are available for a given trading pair at that time.
Once you’ve selected a trading pair with Signals, click on the ‘Signals’ button to view the different strategies that are live on that pair. This allows you to quickly analyze how different strategies are expected to play out so that you can make a more informed decision with ease.
One of the strongest pain points for any trader is solidifying a trade plan. This refers to the act of determining the price at which you will: enter a trade, exit in profit, or exit with a loss. In an accelerated bull market, it can be even more difficult to stick to your original plan. Managing emotions and keeping to your predetermined price targets is no small hurdle. Beaxy Exchange is giving you the best shoes on the market and removing these obstacles from your trading experience.
Entry and exit price suggestions based on AI analytics give you the freedom to open orders with confidence and get on with the rest of your day.
See how Beaxy’s traders are improving their results with Signals.
Chart Patterns for Every Type of Trader
Signals by Beaxy Exchange offers a comprehensive set of chart patterns to ensure that no stones remain unturned. If you are already basing your trades off a particular chart pattern, Signals will help you determine how accurate your lines are. If you’re new to charting, Signals will provide the analysis for you and allow you to learn the ropes faster with precise indicators.
Follow along to learn more about the inner workings of Signals and the chart patterns it will find for you.
Support and Resistance
In the world of speculative trading, support and resistance lines are the most popular technical indicators. These lines are used by traders to determine which price levels have the best odds of pausing or reversing the prevailing trend.
Support refers to the price point where a trend is expected to slow or begin to reverse based on a prior concentration of demand at that level.
On the flip side, resistance is the analogous price point where there is an influx of supply that can be sold off, hindering the price’s ability to continue to rise.
While there are never certainties in trading, technical traders believe that an asset will remain in its trend if it successfully retests continues through support or resistance. They also believe that a price will revert if it fails to move through a defined level of support or resistance. This is often referred to as a rejection.
Follow the example below where each candle represents one hour of trading.
Signals determined that the most accurate level of support for BAT-BTC, on a one-hour timeframe, was located at 646 sats. This was based on the previous lows made at 646 sats which found buying demand that moved the price upward. The Signal was automatically generated as soon as this support line was breached and indicated that the price would continue lower.
And that’s the magic of Signals. It’s one thing to introduce the element of human error by drawing lines and monitoring price levels manually and with alerts. You can achieve an entirely different level of efficiency and efficacy when you have accurate lines automatically drawn and Signals generated the moment an opportunity arises.
Fibonacci retracements are an extension of support and resistance analysis that use the Fibonacci number set to define the locations of multiple support and resistance levels that are relevant to current price action. Similar to support and resistance analysis, the common assumption is that a price will revert if it is rejected at a Fibonacci level. Likewise, it is also assumed that price will continue on its current trend if it successfully retests a Fibonacci level without being rejected.
With the ABCD, we can begin to see how different methods of technical analysis can be combined to make more informed decisions. The ABCD chart pattern can be found when a chart has four specific and consecutive movements and it incorporates the Fibonacci retracement levels (indicated in white on the chart).
Follow the Signal shown above to understand what each of the four points (ABCD) of this pattern mean:
- Price level breaks out and sets a new daily high
- Price level reverts to create a new daily low
- Price level makes a higher low but begins to revert again
- Price level breaks back above the previous high to form a new daily high
In the example above, the pattern is confirmed when the price gets rejected at the levels marked at point C. Signals then use Fibonacci retracements to determine the first line of resistance after the final bounce.
Ascending and Descending Triangles
Triangles are used as a continuation pattern to identify when a trend is slowing down and the likelihood that it will continue. Visually, ascending and descending triangles will always show a consolidation in price action. As the traded range tightens to a small point, the chart takes on the shape of a triangle. Traders often look for charts that are breaking out of a triangle to continue on their previous trend.
In the example above, we see an ascending triangle forming. Ascending triangles are a bullish indicator that suggests the price will continue going higher. The shape is marked by a lower band connecting a set of higher lows and a top band connecting the highs. This signal was generated when the price failed to retest the lower band of the triangle, suggesting a move back towards the top band. Furthermore, a successful retest and break out of the top band would signal a continuation above the triangle.
On the flip side, descending triangles are used to spot bearish price action that signals a continuation to the downside. A descending triangle has one trendline connecting the lower highs being made and a horizontal line that connects the low prices in the series.
With cryptocurrency market volatility reaching new highs, it pays to have a professional technical analyst in your pocket that is finding the best setups for you at all times. If you already have a Beaxy account, click here to put Signals to work or create your account to gain access to Signals, for free.
Want to show this amazing tool to your friends? Find your referral link in your Beaxy account and share it with friends and family to receive 30% of their trading fees, forever!