Harmonic patterns may provide reliable trend reversal signals that are based on the Fibonacci extensions, the Fibonacci retracement levels, and geometric structures. Typically, all harmonic patterns are based on 5 reversal points in price, expressed as X,A,B,C,D. Last reversal point in price D is referred to as a potential reversal zone where an entry may be placed. The Ai.REV bot sends an alert when a high probability reversal condition is met. As shown in the schematics below, the following harmonic patterns are supported: gartley, bat, butterfly, crab, nenstar, cypher, shark and 5-0.
Technical indicator based reversals may provide strong trend reversal signals. The Ai.REV bot sends an alert when the price of an underlying reaches a reversal zone of high probability. Currently, the following reversal types are supported: 4-20 EMA cloud, 20-2 Bollinger band cloud, DeMARK counters, narrow range 7 bar and three anchored volume weighted average price (VWAP) flavors. The anchored H-VWAP from recent high, the anchored L-VWAP from recent low and anchored V-VWAP from recent high volume.
Technical pattern analysis may give reliable reversal signals. Currently, the following technical patterns are supported: broadening formation or megaphone, symmetrical triangle, ascending and descending triangle, falling and rising wedge, cup and handle, inverse cup and handle, head and shoulders, inverse head and shoulders, flag, rectangle, double bottom and double top. The Ai.REV bot sends an alert when the price of the underlying reaches a reversal zone for a high probability continuation play as depicted in the schematics below.
Institutional imbalance zones provide powerful insight based on the trading activity of central banks and financial institutions. Simply put, an imbalance zone, at times referred to as an order block, is a supply and demand zone that forms when smart money is buying or selling. Institutional imbalance zones are created from price moving away from a tight range consolidation where large accumulation or distribution of orders takes place and provide high probability trade locations. The Ai.REV bot sends an alert when an imbalance zone forms, namely, when a lot of orders are injected by bank and financial institution traders creating an inefficiency in the market. This inefficiency is typically resolved by price retracing into this zone as there are many resting orders.