Step #1: Identify a downtrend and a rounded retracement into that downtrend (The Cup)
We’re breaking down the Cup and Handle trading strategy into several steps. The first step is to identify an downtrend and a rounded retracement into that bearish trend. That rounded bottom is the first component of the Cup and Handle pattern.
The strength and the longevity of...
The descending triangle pattern is a continuation chart pattern that develops in the middle of a downtrend. However, in some instances this can play as a descending triangle reversal, also known as the bullish descending triangle pattern.
Note: The more a support level is tested the weaker it becomes.
Additionally, the breakout candle must also produce a close...
Price had a previous bullish trend
Price took a break with a bearish pullback
STE Pulse bars showed a dark green color during this pullback
STE Pulse bars came to the zwero line which is a decision point for price
Price could continue it bearish move
Then the STE bars would cross below the zero line and become a bright red color
Price could bounce off the...
You can see a clear divergence in the price that could represent a bullish impulse, specially considering the strong support/resistance zone that we can see that the market could restest as well.
This is a 1:3 approximately trade. Remember you always have to take care of your money. We never have clear how much we can win but we can have clear how much we are...
So SPX broke through BTL 1 of our Channel with a bigger 1H Bearish Candle. The SMA 100 & SMA 200 are starting to flat out but weren't crossed yet.
When that move to the Downside continues, I would wait for a little Pullback on the 1H and then, in Confirmation with maybe the 4H, open a Short
Position with the Target 2638.36!
I did some Fib and...
Price is in an ascending triangle chart pattern
There were 4 failed Bullish breakout attempts of the triangle top
Price is falling to triangle bottom trendline
1H Short trade
Sell Stop @ 76.20
Sell TP at bottom triangle trendline
There will be a decision point at the bottom triangle trendline
Price will rise up to the top triangle trendline
-XAUJPY looking bullish after showing signs of a reversal. Sellers pushed price down into support but the following day, buyers bid up the price to back above support before the second daily candle close.
-The 2 candle price action resulted in a bullish engulfing setup AT SUPPORT which is a bullish sign.
-The third day (after daily bullish engulfing...
Considering the divergence, the way the price is moving (more like correction than a strong impulse bullinsh move), the current downtrend (daily timeframe) and the channel/support resistance zone, this could be a potential short trade. ONLY TRADE IT IF YOU SEE AN ENGULFING BEARISH BAR then the price test the confluence level.
-Possible 38.1 fibo retest
-Possible 50 EMA retest
You can either decide to trade the breakout or trade the retest zone. Remember breakouts confirm the patterns that we think the market is doing. In this case, we are talking about a POSSIBLE (not confirmed) flag pattern. If the price breaks...
Following the downtrend, we can say we see a 'clear' short opportunity by looking at the flag pattern, which is a continuation pattern. The price could also reach a 50% or 61.8% level from the fibonacci and combining it with the support/resistance zone, and the possible retest to the 50 EMA, it could be a potential trade.