Summary of MMC Phase 1: The No Neck W - Lecture by Candle king #crypto #bitcoin #trading
The video introduces a trading pattern called the "No Neck W," a variation of Complex Stick Patterns (CCP) developed by the presenter, Candle King. This pattern involves the market moving within a specific region, forming a "W" shape with a distinct "neck" level that aligns with the shoulders of the pattern.
Main Financial Strategies and Market Analysis:
- No Neck W Pattern:
- The market forms a "W" shape by falling to a region, rising back, then falling again.
- The "neck" of the W aligns with a key resistance/support level (referred to as the red shoulder).
- Key Price Regions:
- The 50% retracement level is crucial.
- At 78%, the market tends to rise.
- At 22%, the market absorbs supply from the 50% zone, leading to downward pressure.
- Volume and Demand Dynamics:
- The pattern breaks from the middle, requiring significant volume.
- Demand doubles when the market moves upward past the neck of the W.
- The demand that initially pushed the price up to the neck doubles and pushes the price even higher.
- Market Movement Scenarios:
- The market could move in two possible directions after forming the pattern.
- A double demand zone could potentially drive the market to higher levels.
Methodology / Step-by-Step Guide:
- Identify the formation of a W Pattern with a clear neck level.
- Observe the price action around the 50% retracement level.
- Monitor volume to confirm the pattern’s validity (significant volume needed to break the middle).
- Assess demand zones, particularly how demand doubles when price crosses the neck.
- Anticipate two possible market movements post-pattern formation:
- A rise driven by doubled demand.
- A fall due to supply absorption at key levels.
Presenter:
Category
Business and Finance