Hello Traders and Analysts,
A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged Neutral for the Neutral term. Long term, bullish, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.
*** This is released publicly - normally 2-5 days after private idea is released***
Risk Warning
Trading leveraged products such as Forex, commodities and CFDs, carries with it a high level of risk and so may not be suitable for every investor. Prior to trading the foreign exchange, commodity or CFD market, consider your investment objectives, level of experience and risk appetite. You should never risk more than you can afford to lose. If you fail to understand or are uncertain of the risks involved, please seek independent advice and remember to conduct due diligence.
Weekly imbalances
The Weekly Imbalance upper is drawn upon the inside candle before the price purely rejected monthly zone.
Looking left - the previous weeks have established a trading range between the Monthly zone and the -0.27% Fibonacci Pivot. The selling Imbalance had created an equal top forming the weekly zone where price has failed to create higher highs.
Price highs at 1.578 draw a weekly trendline on the to the anchor low to March 2021. The price has failed to break the weekly correctional channel here, therefore upon the high price has rejected to the "0" upon the Monthly Fibonacci pivot. Now with this formation, price will on the daily chart offer a highly probable engulfing breakout to the selling imbalance catching all buyers who expect the breakout.
In addition to this -
Using the weekly formation imbalance now formed - the next imbalance to be placed will be placed upon correctional pattern once "0" is established - looking to how price has previously recorded - the correctional hedge will offer 50-61.8% where a large consolidated structure exists - until price reacts at the these pivot zones - this is where a reactive trade is placed and sell limits.
The inverse imbalance take profit zones are aligned near the monthly 0.705 at 1.421 and the -0.618 is a 1.4195.
Prices will with a 95%> confidence upon the pivot reactive levels where both align .
Monthly imbalance approaches
The monthly imbalances are now presenting the change of hands with a probability in favour of a buying imbalance.
Looking left; the reason for drawing this zone here is for two reasons;
I. Using the anchor ray to plot a monthly trendline - where the low wicks have formed higher lows which have rejected liquidity zones based upon the where the monthly May 2015 candle formed with an indecision.
II. Using the Fibonacci based upon the drawn zone - the correction is large here and corrects back directly to retest the imbalance and rests the wicks on the newly formed zone.
II.I - Price has also developed a Net Imbalance upon the monthly zone. Using a 95% confidence based on the price pivoting upon the standard error of within =<5.0% between 61.8 and the 70.5% FR -
Please refer to the white zone below, which shows the probability of the 70.5% pivot which has a statistical probability of rejecting. from a charting standpoint this doesn't matter, the point is here to purchase upon rejections using logic of a structure low, to structural highs and purchasing upon a rejected pivot.
Revert to the chart below.
The upper imbalance has formed based on the profit taking zones from the Fibonacci at the -0.27, -0.618 profit taking zones and has since been retested twice;
The true upper limit of the imbalance is pivoting and rejecting from 1.616X at -0.618, price has now corrected to a selling imbalance and offers a "0" Fibonacci inverse pivot to retest the imbalance again which also aligns to the Fibonacci sequence 0.236 at the following levels = 1.4909 and 1.4915 and as a high probability shows imbalances to be retested . See below.
Now moving to the current positional imbalance.
In combination with the Weekly Fibonacci and weekly imbalances above;
The Monthly anchor imbalance is formed under two criteria;
I. The large scale Fibonacci Imbalance at 0.705% correctional pivot - this will be retested and rejected.
II. This is Inverse Fibonacci selling imbalance profit taking zone at -0.618.
Waiting and placing trades in this zone will be based on the criteria on;
A position placed upon rejection
A position placed between the 0.705-0.786 or on the inverse -0.618, -0.786.
Daily Chart
The daily chart scales in much quicker and offers - the clear opportunity for a reversal of buys, the reason being - price has shown price pivoting for two three reasons;
I. The monthly Fibonacci and Imbalance zone aligns - with a tap into the monthly zone.
II. The Weekly and Monthly combination of 0.705% and -0.618 matches the imbalance zones drawn.
III. The Daily chart poises the pivot level and creating a consolidative bottom zone - .
Price will now breakout of the Daily trendline and also - indicate a new trading range to now test the -0.27 and "0" based on the range data indicated on the chart.
Correlational analysis;
Both of the below analysis's provide tracking updates since back to 2020, so revert back to old analysis to see where price has come from and enjoy the reads.
Note - Both trades are still active:
Check out to see and track the EUR CAD - USD JPY inverse relationship
GBP AUD
Why is the DXY important to even non correlated pairs in this instance?
- USD is still seen as a world currency - despite conflicting use deteriorating
The DXY is pivotal
DXY to see the imbalance reverse upon the devaluation of the USD where the FED has created an abundance of credit which has financed the citizens essentially to 'stay put' in cases whereby specific industry sectors within the US are rendered 'useless' until the hospitality and entertainment, aviation can all be kick started again.
Below are the pivotal monthly imbalances on the chart which are hard to not notice. The Monthly imbalances clearly indicate where the profit targets for the DXY are as price has clearly rejected.
Use this monthly imbalance analysis to help trade in a higher time frame.
Where are now, currently using the weekly chart
USD CAD
Do you enjoy the setups?
Professional analyst with 5+ years experience
Focus on technical output not fundamentals
Position and swing trades
Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged Neutral for the Neutral term. Long term, bullish, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.
*** This is released publicly - normally 2-5 days after private idea is released***
Risk Warning
Trading leveraged products such as Forex, commodities and CFDs, carries with it a high level of risk and so may not be suitable for every investor. Prior to trading the foreign exchange, commodity or CFD market, consider your investment objectives, level of experience and risk appetite. You should never risk more than you can afford to lose. If you fail to understand or are uncertain of the risks involved, please seek independent advice and remember to conduct due diligence.
Weekly imbalances
The Weekly Imbalance upper is drawn upon the inside candle before the price purely rejected monthly zone.
Looking left - the previous weeks have established a trading range between the Monthly zone and the -0.27% Fibonacci Pivot. The selling Imbalance had created an equal top forming the weekly zone where price has failed to create higher highs.
Price highs at 1.578 draw a weekly trendline on the to the anchor low to March 2021. The price has failed to break the weekly correctional channel here, therefore upon the high price has rejected to the "0" upon the Monthly Fibonacci pivot. Now with this formation, price will on the daily chart offer a highly probable engulfing breakout to the selling imbalance catching all buyers who expect the breakout.
In addition to this -
Using the weekly formation imbalance now formed - the next imbalance to be placed will be placed upon correctional pattern once "0" is established - looking to how price has previously recorded - the correctional hedge will offer 50-61.8% where a large consolidated structure exists - until price reacts at the these pivot zones - this is where a reactive trade is placed and sell limits.
The inverse imbalance take profit zones are aligned near the monthly 0.705 at 1.421 and the -0.618 is a 1.4195.
Prices will with a 95%> confidence upon the pivot reactive levels where both align .
Monthly imbalance approaches
The monthly imbalances are now presenting the change of hands with a probability in favour of a buying imbalance.
Looking left; the reason for drawing this zone here is for two reasons;
I. Using the anchor ray to plot a monthly trendline - where the low wicks have formed higher lows which have rejected liquidity zones based upon the where the monthly May 2015 candle formed with an indecision.
II. Using the Fibonacci based upon the drawn zone - the correction is large here and corrects back directly to retest the imbalance and rests the wicks on the newly formed zone.
II.I - Price has also developed a Net Imbalance upon the monthly zone. Using a 95% confidence based on the price pivoting upon the standard error of within =<5.0% between 61.8 and the 70.5% FR -
Please refer to the white zone below, which shows the probability of the 70.5% pivot which has a statistical probability of rejecting. from a charting standpoint this doesn't matter, the point is here to purchase upon rejections using logic of a structure low, to structural highs and purchasing upon a rejected pivot.
Revert to the chart below.
The upper imbalance has formed based on the profit taking zones from the Fibonacci at the -0.27, -0.618 profit taking zones and has since been retested twice;
The true upper limit of the imbalance is pivoting and rejecting from 1.616X at -0.618, price has now corrected to a selling imbalance and offers a "0" Fibonacci inverse pivot to retest the imbalance again which also aligns to the Fibonacci sequence 0.236 at the following levels = 1.4909 and 1.4915 and as a high probability shows imbalances to be retested . See below.
Now moving to the current positional imbalance.
In combination with the Weekly Fibonacci and weekly imbalances above;
The Monthly anchor imbalance is formed under two criteria;
I. The large scale Fibonacci Imbalance at 0.705% correctional pivot - this will be retested and rejected.
II. This is Inverse Fibonacci selling imbalance profit taking zone at -0.618.
Waiting and placing trades in this zone will be based on the criteria on;
A position placed upon rejection
A position placed between the 0.705-0.786 or on the inverse -0.618, -0.786.
Daily Chart
The daily chart scales in much quicker and offers - the clear opportunity for a reversal of buys, the reason being - price has shown price pivoting for two three reasons;
I. The monthly Fibonacci and Imbalance zone aligns - with a tap into the monthly zone.
II. The Weekly and Monthly combination of 0.705% and -0.618 matches the imbalance zones drawn.
III. The Daily chart poises the pivot level and creating a consolidative bottom zone - .
Price will now breakout of the Daily trendline and also - indicate a new trading range to now test the -0.27 and "0" based on the range data indicated on the chart.
Correlational analysis;
Both of the below analysis's provide tracking updates since back to 2020, so revert back to old analysis to see where price has come from and enjoy the reads.
Note - Both trades are still active:
Check out to see and track the EUR CAD - USD JPY inverse relationship
GBP AUD
Why is the DXY important to even non correlated pairs in this instance?
- USD is still seen as a world currency - despite conflicting use deteriorating
The DXY is pivotal
DXY to see the imbalance reverse upon the devaluation of the USD where the FED has created an abundance of credit which has financed the citizens essentially to 'stay put' in cases whereby specific industry sectors within the US are rendered 'useless' until the hospitality and entertainment, aviation can all be kick started again.
Below are the pivotal monthly imbalances on the chart which are hard to not notice. The Monthly imbalances clearly indicate where the profit targets for the DXY are as price has clearly rejected.
Use this monthly imbalance analysis to help trade in a higher time frame.
Where are now, currently using the weekly chart
USD CAD
![USD CAD - Trade Update [VIP]](https://s3.tradingview.com/a/ahDajBsu_big.png)
Do you enjoy the setups?
Professional analyst with 5+ years experience
Focus on technical output not fundamentals
Position and swing trades
Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
