Get started

Breakout-pullback

The AUDJPY Stuck in ConsolidationLast post: March 25th. See chart . Review: Price had broken support. The bears were showing signs of moving to 80.00. Update: Price reversed, soon after breaking out, taking price into a consolidation. Conclusion: Price found resistance last week and showing signs of bearishness again. Standing aside until 80.00 is confirmed as resistance. Any comments or questions, do not hesitate to leave them below. Give us the thumbs up if you share our sentiments! Sublime Trading
Short
by Sublime_Trading
The Bulls Back in Control on The USDSEK?Last post: April 26th. See chart . Review: A retest as support was expected following a break through key pivot resistance. Update: The retest was sometime in coming. A break and close above May resistance is now needed to suggest a trend continuation. Conclusion: Standing aside for now until the breakout and trend continuation has been confirmed. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading
Pullback to Resistance on The TRYJPYWe last posted on the TRYJPY on March 8th when price had broken and closed below pivot support. As expected, given 6 days in a row of weakness, price has pulled back to the pivot resistance of March. We now want to see this level hold strong, for price to bounce back in the direction of the bear trend and break and close below the May pivot support. Patience needed for now. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Short
by Sublime_Trading
The CHFJPY Pulling Back To 110We last posted on the CHFJPY on May 3rd when price had broken and closed below 110 and had continued to weaken further. After a break of key support and resistance levels, expect price to pullback to retest them. This is currently what price is doing. We now require a break and close below the current May low to suggest a trend continuation. Patience needed for now. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Short
by Sublime_Trading
The TRYJPY Close To Breaking Support We last posted on the TRYJPY on April 10th when price was finding immediate support at the pivot low of March. The following bar did break and close below the pivot support this was short-lived. Price spent the latter part of April pulling back to the 50SMA where it found resistance. The 50SMA is a significant level of support and resistance when price is in a trend and this is a perfect example. It also offers entry points into the trend and so this pullback to the 50SMA and the round number 27.00 resistance cluster would have offered just that, a short entry into the bear trend. By giving price the space to move, we have stayed in our short trade and we are now looking to add further compounds. We first need to see price break and close below the support level of April that price is currently looking to push through. If price does dictate the break and close, then we would want to see price continue to weaken in the direction of the bear trend towards the next round number of 20.00. If the trend continues in the same structure as it did from the start of the year to the end of March, then we are in a fast moving trend structure and that is when breakouts will be the most likely entry points for compounds. This is looking strong for a trend continuation but we need to apply patience and wait for the break below pivot support to be confirmed before we can place any more short trades. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Short
by Sublime_Trading
1
The EURSEK Retesting Pivot SupportWe last posted on the EURSEK on April 25th when price was showing signs of bouncing off an April pivot support. Price did indeed gather momentum and break through the resistance high of April which is now being retested as support. This retest of resistance-turned-support is very much a natural feature of this trend and one that has brought linearity to the structure of the trend. We have marked in all the levels of support that have been retested following a breakout and so what we are seeing in price now is very much a feature of this trend structure. Understanding this has huge benefits. It allows us to plan for when we will enter and compound into the positions that we have open. It allows us to eliminate the stress and not get caught up in the ebbs and flow of profit but instead focus on the process. It also allows us to understand how to place and manage our stop-losses so that we do not get stopped out prematurely and, instead, hold our positions throughout the duration of the trend. What we know want to see on the EURSEK is price hold at this current support level, bounce to the upside and break and close above the high of May. This will then suggest a trend continuation to the next resistance level of 11.0000 and when we will consider adding further compounds. This is a very attractive looking trend so far and certainly one of the better looking trends in FX in quite a while. We do not want to see this come to an end anytime soon. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading
Breakout on The USDTRYWe last posted on the USDTRY on April 11th when price had closed above the round number 4.0000 and was suggesting further bullishness with 3 further bullish bars after the breakout. Aggressive traders would have been triggered long into this trade but held tight and waited for a retest of the resistance-turned-support zone of November. We can see that most of April was spent in a breather area that was made up of what we call an XYZ pattern followed by the breakout of the high of April on the close of yesterday's bar. Ordinarily, we would have placed a trade on yesterday's breakout but given that NFP was out today, we chose to stand aside and avoid getting caught in erratic price movement. We can see that NFP simply moved price in the direction of the bull trend. Given that price has now broken out and the NFP is out of the way for another month, we will now look to place long trades. We would then like to see price move towards the next round number of 4.5000 and beyond offering strategic compounds along the way. This is setting up nicely for what could be a long term bull trend. When our edge appears we take the trade. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading
Will The GBPSEK Finally Breakout?We last posted on the GBPSEK on April 15th when price had closed above the round number 12.0000 which was then confirmed as support. What followed was classic price action movement which is often a battle between the bulls and the bears at these key levels. We can see that the bears came in strong in the form of a pullback to the pivot support level of April before the bulls regained control of the market. Price is now back at the pivot high of April and has attempted on two occasions to break through but failed, with yesterday being one of those days. This created a new high that price needs to break and close above to suggest a trend continuation and when we will look to allocate risk to long trades. We are seeing bullish strength so far today but we need momentum to kick in to take price out of this current breather area it is in with a bullish flag still likely. The trend in play since bouncing off the daily 200SMA has been neat and linear and if the breakout presents itself, we would like to see this trend structure continue through to the next round number of 13.0000 and, ideally, very much beyond. Trends in FX can last up to a year and so this is not unlikely. If we look deeper, the current trend has been in play since September of last year. Allowing a trend to establish itself and then trading in the direction of established trend is a far simpler, far more consistent and, over the long term, a far more profitable way of trading. Waiting for price on the GBPSEK 0.37% to confirm a break and close above resistance to suggest a trend continuation. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading
BCH/USD, 1d, 4h, 1h (4/29/2018)Starting with higher timeframes: 1. Strong uptrend (favors breakouts and offers limited opportunities to buy pullbacks on the way up) 2. Price has hit resistance (strongest since original breakout) and we are now in a corrective phase. Entry options: --A pre-breakout buy. There is a reasonable shot at a breakout here but also a high probability of a reversal at this level. IF bulls continue buying in at higher prices and we get an another rejection that more clearly defines where the bears are then I will consider a pre-breakout. So far I'm not convinced but will keep watching. --An option I like better in this case is a breakout that pushes thru resistance and then pulls back to retest that area. Not all breakouts retest, especially in a strong trend but this is a key level and I would expect a retest at some point. If price fails at resistance I think we will at least see a retest of S/R @ ~1130. I would be willing to place limit orders at this level with my first target at just under 1600 zone. An even better location would be to buy any retest of the S/R zone @ around 850. I would expect a good 1st bounce here if past bounces are any indication Analysis of the corrective structure and intraday will be added as an update below: *Full disclaimer: I'm not a professional by any means, this is merely how I plan to trade this scenario using my own money--nothing more. The primary reason I post these is to see how they play out and learn from my mistakes. **ignore the abbreviations
BLong
by w_h_indicators
Will Weakness Take The CHFJPY Through Support?We last posted on the CHFJPY on April 21st when several days of weakness had given momentum to the bears which were looking to take price through the pivot support of March. The breakout did not materialise and, as has been a feature of FX, price instead found support and the bulls kept price within consolidation. The pullback to the upside lasted only 3 days after which the bears came in strong. Price is now again attempting to push through the drawn-in pivot support zone. As from the last post, a break and close below this support zone will not be enough to suggest a trend continuation to the downside. For us here at Sublime Trading to start entering compounds to the short position we already have in play, we want to see price break and close below the round number support of 110 as well. Once this level has been confirmed as resistance will we look to start allocating risk to further short positions with a view to seeing price move towards 100 and beyond. As trend trades, using round numbers as "target level" removes the need for fixed targets and, instead, allows us to let our winning trades run. This is inline with the very essence of good trading which is to cut losers short and let winners run. Patience needed for now on the CHFJPY until price clears these key support levels. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Short
by Sublime_Trading
The EURUSD Breaks Support We last posted on the EURUSD on April 4th when price was still very much stuck in an area of consolidation. Following the post, price action seemed to be gaining momentum in the direction of the bull trend but that was short lived. The bears took control of the market, and in the last week particularly, we have seen price break through the pivot support that was forming the base of this current period of consolidation. This is not what we wanted to see. As price is trading above the 200SMA, our overall bias is bullish and so we would have liked to have seen a break and close above resistance. All is not lost. The support level of September 2017 is holding strong and we saw the bulls finish last week strong with a bounce off this level. This may given the impetus back to the bulls and for them regain the ground lost. However, if this level is broken, then we have a significant support zone directly below in the form of the 200SMA clustered with the round number of 1.2000. Ideally, we want to see price stay above all these levels and gather momentum to the upside. We want to see the bulls moving price through to 1.3000 in a neat linear trend structure. This has proven difficult so far for the bulls but that is not to say this can not happen. As long as price remains above the 200SMA, there is always a chance. But if price breaks and closes below the 200SMA, then we will look to manage the long trade that is open. The trade has now moved into a small loss with the weakness in price over the last few days. Losses are part and parcel of trading but are kept small through good position sizing. This involves both a small allocated risk and a well-placed stop-loss. Patience needed for now and we will let price dictate what course of action to take next. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading
Bovis Homes Group is Pulling Back!In my previous post for Bovis Homes Group which you can find here, price had formed an inverted head and shoulders pattern. Price then continued to move in the direction of the uptrend but as is expected, price is now forming a pullback. When price breaks through an area of strong resistance, most of the time price will pull back to retest the previous resistance which turns to support. Price is doing just that and this is why we always wait for the second breakout as price can sometimes drop back below the resistance level and go into consolidation. Right now it appears that price is using the support level to potentially give it momentum to bounce back but a breakout will confirm this. There is never a need to jump into a trade early even if you can potentially get in at a cheaper price. When you wait for breakouts, you confirm the trend direction and end up getting into more profitable trades because the odds become in your favour, which is what you want as a trader. The pullback is small so if we do get a breakout it may happen soon so continue to keep this stock on your watchlist. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
BLong
by Sublime_Trading
BCH/USD, 1h, two spots to buy pullbacks2 days ago, BCH settled into to a small corrective structure (large red rectangle). As things played out, a well-defined resistance level became apparent and buyers kept buying in at relatively higher prices (red trend line). Towards the end, an even smaller corrective structure formed and I was able to buy in with a limit order after price broke above and pulled back to it. This entry (at $1350) allowed me to set a tight stop and catch the breakout of the larger corrective structure. So far, I am up 5Rs (probably less by the time I finish writing this) but I think this trade could run so at this point I plan to hang on as a retest of the highs would be about a 14R trade. This could play out a few ways: Best case, BCH breaks resistance @ 1430, perhaps pulls back to retest, and continues on. A retest would be a good spot to have an order waiting. I will move my stop up after a solid break of this level. Another possibility is that resistance at 1430 stops price and sends it back to retest 1370--this is strong support and would be a solid place to buy a pullback. Since my stop is already at break even, I will likely place another limit order here just in case. If 1370 breaks on this timeframe that will a pretty good sign that the bears are back in control.
COINBASE:BCHUSDLong
by w_h_indicators
The USDSEK Breaks Resistance The USDSEK is new to our trading blog and one that is starting to look like a potential long setup. We have recently featured both the EURSEK and the GBPSEK for trend trading trading opportunities so it is no surprise that the USDSEK is of interest too. We last traded the USDSEK back in 2014/2015 when we had the last significant period of trend on several USD currencies. These currencies also included the AUDUSD, EURUSD and the GBPUSD. The USDSEK was one of the top performing currencies in that period producing a most linear trend from circa 6.5000 as support to just short of 9.0000 as resistance, a move of 2500 pips that was covered in a year offering multiple compounding opportunities along its ascent. This was a period of trend where we extracted over 55 000 pips in 9 months on only a handful of positions across all the above mentioned currencies. Since then, the FX market has been notoriously difficult to trade with sustained trends being non-existent. The money since 2016 has been in the bull run in stocks and so those who have focused heavily on FX in this time will have found it difficult to make sustained profits. Trading side-ways markets has no edge. Looking at the setup on the USDSEK, we can see that price has now moved its way through the 200SMA and the 50SMA since February when the bulls took control of the market at the major support zone of 8.0000. Price is now crucially also trading above the key pivot resistance of 2017 which is now acting as support. What we now want to see is a pullback to retest this level and then the next breakout to suggest a trend continuation towards 9.0000. We will then look for the appropriate setup to start allocating risk to long trades. Patience needed for now. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading
The EURSEK Bouncing Off SupportWe last posted on the EURSEK on April 20th when price had broken above followed by a pull back to the drawn-in pivot support level. This pivot level so far has held strong and we are seeing strength to the upside. We want to see the momentum to the upside continue and take price through and close above the pivot high of April and ideally in the form of a bullish flag. If the bullish flag does not materialise then that will mean further patience until the breakout is confirmed. Either way, we require a breakout for a continuation of the bull trend to be likely and until that happens we will be holding tight and applying patience. If the breakout does happen then we would like to see price move towards the next key level of 11.0000 and offer opportunities to compound on its ascent. We have a long position As the trend suggests, if the breakout does happen, expect a pullback to retest this current April high before a bounce up. Embrace and expect pullbacks as they are a natural feature to price action. These are areas where many panic and lose money or get out of winning positions way too early or areas where people often are sucked in to go against the trend but fail. Those who have a solid understanding of the natural features of price will simply stand aside and apply patience and wait for price to dictate a breakout to the upside in the case of the EURSEK. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading
NMC Health Hitting SupportNMC Health is at support after breaking out when we posted about it here. We mentioned that there is the $40 round number above which may cause resistance, but price has decided to pull back which is normal after breaking out of consolidation. The resistance level of the consolidation zone has now become support and we have to wait and see which direction price goes next. If price returns back into the consolidation zone then we will have to stand aside from taking any trades. If price bounces off the support level then we can look for a breakout trade. Still bear in mind that the $40 psychological round number is above so the trade will have to be at break even before that point otherwise it may be worth waiting for price to move past that zone then enter a breakout. More updates to follow. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
NLong
by Sublime_Trading
The EURTRY Pullback EntryWe last posted on the EURTRY on April 10th when price had broken and closed above a very significant resistance level in the form of the round number 5.0000. This would have offered a long entry into the bull trend for the more aggressive trader. However, here at Sublime Trading we tend to apply a little patience at certain areas of support and resistance to reduce the possibility of getting caught up in a fake breakout. The EURTRY has so far behaved how we wanted and that is further moves in the direction of the bull trend followed by a retest of the 5.000 level as support followed by the required candlestick formation. Given the quality of the setup, we have allocated a small risk, less than 2% to this pullback setup. We would now like to see price move towards and break and close above the pivot high of April which will be a strong sign of a trend continuation. We would then like to see price move towards 6.0000 and offer further entries to compound. This is looking strong for a trend continuation of the bull trend. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading
The GBPUSD Fails to Break ResistanceWe last posted on the GBPUSD on April 17th when price was testing and attempting to break throught the pivot resistance high of January. What we wanted to see was price break and close above this pivot resistance confirming it as support. This would then have offered a long entry into the trend with around 600 pips of profit on the table towards the next key resistance of 1.5000. But the breakout did not materialise and, instead, we can see that price made a swift turn around. The bears came in strong and have pushed price back to the support cluster of the 50SMA and the round number 1.4000. This keeps price within this current area of consolidation and so we still require a breakout. All is not lost. The overall bias is still bullish with price trading above the daily 200SMA amongst other key support levels. In addition, periods of of consolidation make an excellent foundation for trends to develop. Remember, the longer the consolidation the bigger the breakout as the expression goes. It is now a waiting game to see of price does breakout to the upside where we can add new positions to the long position already in play or if price weakens back to the 200SMA where we will look to exit our trade. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading