How to enter a trade using the inverted H&S (Education, Example)An inverse head and shoulders, also called a "head and shoulders bottom", is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends. This pattern is identified when the price action of a security meets the following characteristics: the price falls to a trough and then rises; the price falls below the former trough and then rises again; finally, the price falls again but not as far as the second trough. Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs. An inverse head and shoulders is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends
An inverse head and shoulders pattern, upon completion, signals a bull market
Investors typically enter into a long position when the price rises above the resistance of the neckline.
Chen, James. “Inverse Head And Shoulders.” Investopedia, Investopedia, 18 Nov. 2019, www.investopedia.com
Patternsjpy
Copper LongPrice has achieved our D1 Fibonaci extension. Price is back at our 0% fib acting as resistance turned support. If we se a break and retest on the counter trend line with bulish price action we could see price make its way back up to our D1 extension and hopfeully completing our D2 -61.8% fib. The weekly candle has closed as a weekly bearish candle we can take charectersitcs that there is high buying pressure within the market. Currently the bulls are dominant within the market. Our MACD is showing strong buying pressure and our EMA are all in line with the bullish momentum. We could see a rejection as price is currently at our weekly 200 EMA. PATIENCE IS KEY WAIT THE RIGHT ENTRY WAIT FOR THE RIGHT CONFLUENCES IF THEY ARENT THERE LEAVE IT AND MOVE ONTO THE NEXT. QUALITY OVER QUANTITY.
EURUSD Short: Potential Drop From Here w/ Tight StopAgain in the PRZ we can see a bearish impulse that may be the beginning of the bearish actionary wave-C. By Placing stop above highs, we're maximizing R/R potential and exitting the trade if uncertainty is introduced. My entry will be on the pullback. Updates to come as the tide rolls. Happy trading!
Gartley pattern at a great levelSorry for posting it late, I have been busy. I actually left my orders with an ATM strategy and I got filled but the stop and targets were not placed. I guess that is why we forward test, right? I have no idea why that happened but I will have to figure it out. Anyways, if you front run your orders you may have been filled. We are on a bullish trend and with room left to go higher.
Good trading! Follow your plan!!
USDJPY : Bearish Bat short Entry setupHey Guys,
We got simple bearish bat entry setup, so lets initiate short positions once USDJPY reaches our expected entry level. Based on risk:reward you are aiming for choose your SL's and check ratio;s for the bearish bat as everyone in tradingview community uses different ratio's.
Hit Likes if you agree, Thanks for your support...
Happy Trading !!
USDJPY 1HR: Potential TCT & Pattern Formation ShortsSince breaking the 107.60's area, I've been waiting for some relief on the USDJPY and an opportunity to hop on a retracement and get short.
As the market slowly retraces back to previous structure resistance a few opportunities have developed on the chart including a basic CTS trade using an AB=CD pattern, structure and fibonacci confluence. As well as a potential advanced bat formation.
I doubt we'll see any of this occur seeing how tomorrow is Job's day, but it never hurts to do your analysis and I'd much rather be over prepared to catch an opportunity that under prepared and miss one.
Also if you haven't done so, make sure you head over to my Youtube channel and check out my latest videos. I'll be adding a new one demonstrating some techncial analysis later today, but I've recently done two answering questions about the benefits of using multiple brokers and talking about the biggest hurdle in my trading career and how I overcame it. ( goo.gl )
Akil Stokes
Chief Currency Analyst & Head Trading Coach
www.TradeEmpowered.com -The Premier Online Trading Education Company
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RSI divergence with structureVery strong divergence between the market price and the RSI, which is approaching an oversold region.
I would go long now or wait until the RSI actually goes into oversold territory. Just posting these RSI divergence trades as ideas, I don't usually trade them but it will be interesting to explore this as a potential addition to my strategy.
See below for previous successful RSI trades I have done.
USDJPY: Potential Bearish Bat PatternAs the USDJPY finally shows some relief from it's tirade last week, we have a potential bearish bat pattern forming at a previous level of consolidation. The HTF structure lies a little higher at the red dotted line, but it would not surprise me at all if we saw a reaction between 114.50's and 116.00's
Other pairs that are on my radar today $GBPUSD, $AUDUSD, $XAUUSD
Akil Stokes
Chief Currency Analyst & Head Trading Coach
www.TradeEmpowered.com -The Premier Online Trading Education Company
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You Can Also Follow Me On Instagram, Periscope & StockTwits @AkilStokesRTM
GBPAUD - Time for Long in Hourly Have you checked the previous idea on GBPAUD ??
Well if you have notice we acquired a Massive +270pips in that trade. A Massive Win Trade too !
Now GBPAUD at its support, so lets ride the little wave up also.
Though its Risk:Reward of 1.2, A Good Trade if you follow your Rules.
Hit thumbs Up for Likes...
Check that Massive +270 pips :
Go Short EURJPY ! Dual Patterns - Bearish Bat/GartleyThe choice is yours to choose the best one to trade...
Looks like we are going to have day full of patterns...
As I always say Ratio's differ for each one of us, so trade as per your plan.
Give a Thumbs Up for Idea Like...
Share/Comment your views,even if it differs & Enjoy Trading ....
Bullish Gartley EURJPY, Go Long if your plan suits this tradeWas going through few charts during Saturday morning and found this Bullish Gartley in EURJPY , if your trade plan and risk ratio allows you to go Long, Take positions.
In Pattern trading each one uses different ratio's, so check whether the ones you are using suits you and works for You.
If you like the idea Like/Share & Comment :)
Happy Weekend !
USDJPY: Potential 1 Hour Back to Back Cypher PatternsI’ll tell you what trader’s, there’s nothing more exciting than a pain free trade and nothing more nerve racking then needing to put entries right back on but in the opposite direction.
That’s the situation that we have here on the USDJPY 1 Hour timeframe. Yesterday we had a bearish Cypher pattern roll over to smash targets (hopefully TGT 2 gets clipped) and now we have to be ready to enter once again but in the opposite direction. (Using a Stop and Reverse is an option but I’d personally rather get my targets off and not take the risk).
Do be a favor, before blindly following me WHICH I HOPE NONE OF YOU ARE DOING, double check your “C” leg to make sure it’s valid. As well all know (or know now) there’s no central market in Forex so price quotes will be different depending on your broker. That means for some of you it will be valid and for others it won’t. Hence why you always hear traders say “Trade What YOU See”
Akil Stokes
Chief Currency Analyst at Trade Empowered
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Cypher & Bat -> Amazing - GBPJPYCheck out the Cypher rules: www.youtube.com
This is my most popular video so far, enjoy :)
I tried to short this pair yesterday based on a trend following play. That didn't work. So, will this work out? Let's wait and see.
Targets goes at the 38.2% & 61.8% fib. retracements of the CD move of the Bat.
Stop loss goes beyond X by the ATR of the entry candle of the Cypher.
Ask me if something is not clear.
Ahmed
CEO, Pro Trading University