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Bearish Patterns

USD/JPY SENDS CLEAR BEARISH SIGNALS|SHORT Hello, Friends! USD/JPY pair is in the downtrend because previous week’s candle is red, while the price is obviously rising on the 4H timeframe. And after the retest of the resistance line above I believe we will see a move down towards the target below at 152.709 because the pair is overbought due to its proximity to the upper BB band and a bearish correction is likely. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Short
by EliteTradingSignals
1
AUD/CHF BEARS ARE STRONG HERE|SHORT Hello, Friends! AUD/CHF is making a bullish rebound on the 12H TF and is nearing the resistance line above while we are generally bearish biased on the pair due to our previous 1W candle analysis, thus making a trend-following short a good option for us with the target being the 0.517 level. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Short
by EliteTradingSignals
1
GBP/AUD SHORT FROM RESISTANCE Hello, Friends! It makes sense for us to go short on GBP/AUD right now from the resistance line above with the target of 2.044 because of the confluence of the two strong factors which are the general downtrend on the previous 1W candle and the overbought situation on the lower TF determined by it’s proximity to the upper BB band. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Short
by EliteTradingSignals
1
CAD/CHF BEARS ARE GAINING STRENGTH|SHORT Hello, Friends! Bearish trend on CAD/CHF, defined by the red colour of the last week candle combined with the fact the pair is overbought based on the BB upper band proximity, makes me expect a bearish rebound from the resistance line above and a retest of the local target below at 0.566. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Short
by EliteTradingSignals
1
CHF/JPY BEST PLACE TO SELL FROM|SHORT Hello, Friends! CHF-JPY uptrend evident from the last 1W green candle makes short trades more risky, but the current set-up targeting 188.582 area still presents a good opportunity for us to sell the pair because the resistance line is nearby and the BB upper band is close which indicates the overbought state of the CHF/JPY pair. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Short
by EliteTradingSignals
1
NZD/JPY BEARS ARE STRONG HERE|SHORT Hello, Friends! NZD/JPY pair is in the uptrend because previous week’s candle is green, while the price is evidently rising on the 1H timeframe. And after the retest of the resistance line above I believe we will see a move down towards the target below at 87.841 because the pair overbought due to its proximity to the upper BB band and a bearish correction is likely. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Short
by EliteTradingSignals
1
NZD/CHF BEARS ARE GAINING STRENGTH|SHORT Hello, Friends! NZD/CHF is making a bullish rebound on the 2H TF and is nearing the resistance line above while we are generally bearish biased on the pair due to our previous 1W candle analysis, thus making a trend-following short a good option for us with the target being the 0.456 level. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Short
by EliteTradingSignals
1
When Generals Run and Soldiers Nap — The Market’s Odd ParadeEver seen an army march where the generals sprint ahead, but the soldiers just yawn and stay behind? That’s exactly what’s happening in the U.S. futures battlefield right now. The ES, NQ, and YM — our large-cap “generals” — opened the week above their prior highs, looking ready for victory speeches. But the RTY, representing small caps, is still lagging like it hit the snooze button. The Breadth Problem Healthy rallies need everyone on board. When small caps don’t join the charge, it’s like running a marathon with only one leg — you might move forward, but not for long. That’s why this gap between the big guys and the small ones is called bearish divergence — momentum without muscle. How Deep Could It Go? Under the surface, liquidity pockets (UFO supports) show the “landing zones” below price: ES: ~5% lower NQ: ~6% lower YM: ~9% lower RTY: ~14% lower (!) Translation: if the market trips, the generals may bruise a knee — but the soldiers could roll down the hill. Tick, Margin, and Scale CME index futures come in two flavors — E-minis for the pros, Micro E-minis for precision control: S&P 500 (ES/MES): tick 0.25 → $12.50 / $1.25; margin ≈ $21K / $2.1K Nasdaq 100 (NQ/MNQ): tick 0.25 → $5 / $0.50; margin ≈ $30K / $3K Dow Jones (YM/MYM): tick 1 → $5 / $0.50; margin ≈ $13K / $1.3K Russell 2000 (RTY/M2K): tick 0.10 → $5 / $0.50; margin ≈ $9K / $0.9K (Approximate numbers, educational only.) The Lesson Breadth divergences don’t “predict” the end of the rally — they just whisper: “Careful, this parade’s out of sync.” So before chasing the next breakout, remember: even the best generals can’t win a war if their soldiers stay in camp. Want More Depth? If you’d like to go deeper into the building blocks of trading, check out our From Mystery to Mastery trilogy, three cornerstone articles that complement this one: 🔗 From Mystery to Mastery: Trading Essentials 🔗 From Mystery to Mastery: Futures Explained 🔗 From Mystery to Mastery: Options Explained When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CME_MINI:RTY1!Education
by traddictiv
AUD/JPY SENDS CLEAR BEARISH SIGNALS|SHORT Hello, Friends! AUD/JPY pair is trading in a local uptrend which we know by looking at the previous 1W candle which is green. On the 1D timeframe the pair is going up too. The pair is overbought because the price is close to the upper band of the BB indicator. So we are looking to sell the pair with the upper BB line acting as resistance. The next target is 98.106 area. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Short
by EliteTradingSignals
1
GBP/JPY BEARS ARE GAINING STRENGTH|SHORT Hello, Friends! We are going short on the GBP/JPY with the target of 197.417 level, because the pair is overbought and will soon hit the resistance line above. We deduced the overbought condition from the price being near to the upper BB band. However, we should use low risk here because the 1W TF is green and gives us a counter-signal. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Short
by EliteTradingSignals
1
GBP/CHF BEARS ARE STRONG HERE|SHORT Hello, Friends! It makes sense for us to go short on GBP/CHF right now from the resistance line above with the target of 1.059 because of the confluence of the two strong factors which are the general downtrend on the previous 1W candle and the overbought situation on the lower TF determined by it’s proximity to the upper BB band. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Short
by EliteTradingSignals
1
Generals Charge, Soldiers Stall: Reading Bearish Divergence1. Context: The Battle Line Between Large and Small Caps This week’s futures landscape paints a striking contrast between leadership and hesitation. In the CME equity index universe, the large caps — ES (E-mini S&P 500), NQ (E-mini NASDAQ 100), and YM (E-mini Dow Jones) — advanced as a united front, all opening above their prior week’s highs. The market generals were charging confidently uphill. Yet, on the same battlefield, the RTY (E-mini Russell 2000) lagged behind. The small caps failed to take out the prior week’s high and opened below the aggressive gaps that marked their larger counterparts. In trader terms, breadth was narrowing. In storyteller terms, the generals were calling “forward!” — but the soldiers weren’t following. Such divergences in participation often mark transition zones in market psychology. When large caps push while small caps stall, it doesn’t necessarily mean the campaign is lost — but it does mean confidence among the broader troops is weakening. 2. Reading the Divergence: When Breadth Narrows The relationship between large-cap and small-cap indices often reveals more than just price action — it exposes the structure of conviction. In sustained bullish environments, small caps tend to lead or at least confirm the move. Their participation signals that risk appetite is healthy across the field, not confined to the biggest names. When that breadth fades, the advance becomes fragile. A rally driven only by mega-cap components (the generals) can stretch further, but with decreasing participation, it becomes increasingly vulnerable to shocks. Traders who watch intermarket behavior know this phenomenon as bearish divergence — higher highs in the generals, lower or flat highs in the soldiers. From a practical standpoint, narrowing breadth implies that fewer sectors are carrying the index higher. In other words, the market’s engine is running on fewer cylinders. This is not a timing trigger on its own, but it is a powerful contextual clue suggesting that volatility could expand when the leadership stumbles. 3. Quantifying the Risk: Supports and Market Depth Looking beneath price, Order Flow (UnFilled Orders) provides a sense of where liquidity may reside once the current rally pauses. Key UFO support zones, acting as potential demand clusters, reveal how far the market might travel before encountering fresh buy interest. From this week’s open: ES shows its next support roughly 5.26% below current levels. NQ sits around 6.25% below. YM’s cushion lies approximately 9.39% beneath. RTY, however, faces a much deeper air pocket — the next notable UFO support sits nearly 13.99% lower. This asymmetry is critical. If markets retreat, small caps have the most unprotected downside terrain before reaching meaningful support. In other words, the generals may fall back a few miles, but the soldiers could tumble down the hill. These percentages don’t guarantee a move — they outline the potential amplitude of correction if risk-off flows accelerate. The deeper the distance to support, the larger the volatility zone beneath. 4. Strategic View: Large Caps Lead, but Are They Overextended? The current setup puts traders in a classic tactical dilemma: Are the generals inspiring a new advance, or are they overextended and exposed? Two plausible scenarios emerge: Continuation scenario: If the small caps (RTY) regain strength and take out their prior week’s high, the breadth gap could close. This would validate the generals’ move and reestablish a broad-based advance. Correction scenario: If RTY continues to stall while ES, NQ, and YM fail to sustain their gaps, it would confirm a divergence-led weakening. A close back below prior week’s highs could trigger a retreat toward the support zones identified earlier. The idea is not to predict a reversal, but to prepare a framework in case weakness unfolds. 5. Contract Overview: E-mini and Micro Versions To analyze or engage these markets, traders can study both E-mini and Micro E-mini contracts listed on the CME. These contracts represent standardized ways to participate in U.S. equity index movements, but at different notional sizes. E-mini contracts (ES, NQ, YM, RTY) are the long-standing institutional benchmark instruments that track major U.S. equity indices with efficient liquidity and tight spreads. Micro E-mini contracts (MES, MNQ, MYM, M2K) provide the same exposure pattern at one-tenth the size, offering more granularity in risk management and flexibility for smaller accounts or precise hedging. It’s important to understand that these futures allow directional and hedging applications without requiring ownership of the underlying equities. However, as with any leveraged product, margin requirements can amplify both gains and losses. Traders should familiarize themselves with margin-to-equity ratios and maintenance requirements before participation. S&P 500 – ES / MES Minimum tick: 0.25 points Tick value: $12.50 (E-mini) | $1.25 (Micro) Typical margin: ≈ $21K (E-mini) | ≈ $2.1K (Micro) NASDAQ 100 – NQ / MNQ Minimum tick: 0.25 points Tick value: $5.00 (E-mini) | $0.50 (Micro) Typical margin: ≈ $30K (E-mini) | ≈ $3.0K (Micro) Dow Jones – YM / MYM Minimum tick: 1 point Tick value: $5.00 (E-mini) | $0.50 (Micro) Typical margin: ≈ $13K (E-mini) | ≈ $1.3K (Micro) Russell 2000 – RTY / M2K Minimum tick: 0.10 points Tick value: $5.00 (E-mini) | $0.50 (Micro) Typical margin: ≈ $9K (E-mini) | ≈ $0.9K (Micro) Please note that all margin requirements are approximate and may be adjusted. 6. Risk Management Spotlight Breadth divergences can test patience and positioning discipline. Managing exposure becomes as important as analyzing the signal itself. Here are three core reminders: Position Sizing: Adjust to volatility. If the distance to the nearest support is wide, scale down accordingly to maintain a consistent risk percentage per trade. Stop-Loss Discipline: Predetermine exit points based on technical invalidation, not emotion. Capital Preservation: Capital is ammunition; running out of it limits participation when true opportunity returns. In the end, risk management isn’t about avoiding loss; it’s about surviving long enough to thrive when clarity returns. When markets are divided between generals and soldiers, maintaining balance becomes a trader’s greatest edge. 7. Educational Takeaway The “generals vs. soldiers” analogy reminds us that market structure is not just about price—it’s about participation. When large caps surge but small caps lag, it signals a potential exhaustion point in the broader advance. The healthiest rallies are those in which all troops move in sync. For traders and investors, breadth divergences serve as an early-warning system, not a countdown clock. They encourage a review of exposure, tighter stop placement, and a shift toward risk-awareness rather than return-chasing. At this stage, the technical setup across U.S. index futures reads like a fragile truce: ES, NQ, and YM maintain their gains above prior-week highs, while RTY still lingers below. Should the soldiers eventually follow, confidence could rebuild. But if the generals start retreating first, the path toward their UFO supports could unfold quickly. The core takeaway: breadth divergences don’t predict timing—they illuminate imbalance. Recognizing that imbalance early allows traders to respond intelligently instead of react emotionally when volatility expands. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CME_MINI:ES1!Education
by traddictiv
2
EUR/JPY BEARS WILL DOMINATE THE MARKET|SHORT Hello, Friends! Previous week’s green candle means that for us the EUR/JPY pair is in the uptrend. And the current movement leg was also up but the resistance line will be hit soon and upper BB band proximity will signal an overbought condition so we will go for a counter-trend short trade with the target being at 176.680. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ✅LIKE AND COMMENT MY IDEAS✅
Short
by EliteTradingSignals
1