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Breakout-pullback

EURSEK Pullback!EURSEK was last mentioned in this post after price broke through a resistance level. Since then price has started to pull back which is a part of trading. If we look at the history of this forex pair, we can see that price tends to use previous areas of resistance as support levels so we will have to see if price will do the same with this recent support level. If price bounces off support then we should see price move up to create new highs. If the support level is broken then we may see a change in direction or it may just be a deep pullback to another support level before the continuation of the trend. Price may even move down towards the 50 simple moving average. As the overall trend is bullish and the higher timeframes are showing a bullish bias then we just have to sit back and wait for price to make the next move. Remember that in order to make profit as a trader we need to cut our losses short and maximize our winning trades. So in this case, if support levels are broken, know when to close the trade and avoid bringing emotions into it. The next few trading days may determine where price will be heading so we shall have to wait and see. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading
Abcam Breakout!Abcam PLC broke through resistance after going through a period of consolidation and now looks like it wants to retest the support/resistance level. This stocks has been trending well since July 2014 and although the trend is consistent, this stock does experience periods of deep pullbacks. When trading a stock with deep pullbacks the trader has to bear this in mind because there will be times when the trade will be in profit then the profit will be taken back during the pullbacks so there may be a battle of the nerves to hold on until the trend resumes. Pullbacks are a part of trading and we may prefer to take trades with small pullbacks, but as Abcam has been a consistent growing stock this can be an exception because over the long term this stock can hand out generous amounts of profit. You can notice on the daily timeframe that this stock has moved down all the way to touch the 200 simple moving average in the past. We want a trend to use the 50 simple moving average as support in an uptrend and as resistance in a downtrend. The fact that this stocks touches the 200sma shouldn't concern a trader as these can be areas to enter a pullback trade, just as long as the higher timeframe is going in the same direction. Price is currently above the 50 & 200 simple moving averages on both the Weekly and Daily timeframes so it is showing signs of continued strength. One thing to also note is that although a stock may have deep pullbacks, the behaviour of the stock can change over time and start producing smaller pullbacks so that will be something to watch out for here. If this stock is traded as a breakout then the stops should be placed wide to account for the deep moves. At the moment price looks like it is coming back to retest the resistance level it broke through and may use it as support, and this will become apparent in the near future. If the support area does not hold then we may see price return back to the consolidation zone. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
ALong
by Sublime_Trading
The EURSEK Triggering Long TradesThe EURSEK is new to our blogs but one we do have long positions in play on. Yesterday, we featured the GBPSEK and the emergence of a possible bull trend. The EURSEK is looking just as appealing with a slightly more advanced setup with price action and hence why our long trades were placed. Like several currencies that we have highlighted, this currency was also in a period of consolidation that dated back to last year. Price eventually broke of consolidation in February of this year which also took price above the key round number of 10.0000. With this level now acting as support, we wanted to see a retest of this level which did happen in March. Since then, price has bounced off this level and has offered multiple entry points in the form of pullbacks and breakouts as this bull trend has continued. The EURUSEK has been trending very well since bouncing off the support zone that involved the 200SMA at the end of January of this year. The trend structure that has emerged is linear with clean pullbacks that have retested the resistance-turned-support levels. It is very much early days on this currency. We would like to see this trend structure continue all the way through to the all time high in 2009 which was just short of 12.0000, offering strategic opportunities to compound on its ascent. If 12.0000 resistance is broken then 15.0000 would be the next key level. This is certainly one of the more appealing trends in the FX market right 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 GBPUSD Gaining MomentumWe last posted on the GBPUSD on March 21st when price was showing signs of strength but still trading within the marked area of consolidation. Since that post, price moved further up, came back to retest the 1.4000 round number support level and bounced back to the upside. Price has used this support levels to spring board back towards the high of January of this year. But just like in our previous post, we are still waiting for a break and close above the January pivot resistance which will take price out of this period of consolidation which is now approaching its third month. FX has been notoriously difficult to trade now since 2015. Trends are short lived and periods of consolidation often last several weeks, even months, following breakouts. This is not what we want. We want trends to emerge that offer strategic opportunities to compound. These trends will at some point emerge. When they emerge is down to the forces of the market. When entry points, in the form of breakouts or pullbacks, do present themselves and your edge is met, that trade must be taken. The emphasis is always on the emergence of a trend and making profit. You must be in it to win as it only takes one solid trend to completely change the outlook of your trading account. However, there is always the chance that your edge may not work out and for that reason, the allocated risk must always be small. For us, it is typically no more than 2%, often less. Patience needed on the GBPUSD for now. A potential breakout is on the horizon but we need price to dictate that. 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 USDTRY Steams AheadWe last posted on the USDTRY on April 6th when price had broken and closed above pivot resistance. Prior to that, price had been in a consolidation that stretched back to November of last year. The longer the consolidation, the bigger the breakout is the expression and we would like that to hold true for this currency. Price has seen three strong bullish days since the last post but do not expect this continue. Price does not and will not simply shoot off in a straight line. There will be trends that move faster than others, and this could be an example of that, but even fast moving trends have breather periods and pullbacks within the trend. What we now want to see on the USDTRY is just that - a breather or a pullback of sorts. It may not be as deep as to the support level highlighted above but we do need to see a correction. If the pullback is deep then it could offer a pullback entry. If price simply goes through a breather, then a breakout entry would be more suitable. We will let price dictate that. 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 TRYJPY Break Pivot Support?While the other JPY currencies that we have posted about, such as the AUDJPY , the CHFJPY and the USDJPY , continue to pullback or remain firmly in consolidation, the TRYJPY is leading the way for a possible breakout and trend continuation. We last posted on the TRYJPY on April 4th when price had pulled back to and found resistance at a previous pivot level. Since then, price has weakened further and is now back at the pivot low of March. This is classic price action movement in a trend. Price does not and will not ever move in a straight line. A trend is made of moves in a direction followed by a pull back to levels of support and resistance before a move back in the direction of the main trend. The TRYJPY has moved in the right direction according to our previous post but we still need to apply patience and wait for a break and close below the March pivot support and ideally in the form of a bear flag. Flags, as trend traders, are our preferred chart pattern as they offer entry points, confirm a trend continuation and bring linearity to the trend structure. This will then give us a strong confirmation of a a continuation of the bear trend and when we will look to enter compounds to the short trade we already have in play. We are close to a setup but we will be standing aside and applying patience until price confirms the breakout. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Short
by Sublime_Trading
GBPCAD Trading Below 1.8000We last posted on the GBPCAD on March 28th when price was being propped up by pivot support. Price has broken through these levels and is now also trading below the round number 1.8000 and the weekly 200SMA which we would have liked to have seen hold strong as support. Price is now back at our entry from initial break an close above 1.8000 last month. All is not lost. Support and resistance levels are not hard levels. They are zonal areas. Price moves to around these areas and can often dip below in a pullback in a bull trend before finding support and resuming the move back up. In terms of support, the daily 50SMA is not too far below which is clustered with the high of 2017. In addition, if we look at the monthly time frame when the bull trend started at 1.6000 support, September, October and November 2017 were all bullish followed by December being bearish. We then saw January, February and March of this year all being bullish with April so far being bearish. We can not expect price to move in a straight line. There will always be pullbacks and periods of profit taking. If this pullback turns into a full on trend reversal, then we have a stop-loss in place with a small risk attached. 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
Weakness on The TRYJPYWe last posted on the TRYJPY on March 19th after price had broken support and triggered our short position. Since then, price moved further into profit before pulling back to retest the drawn-in pivot resistance. Price has since bounced off this resistance level and is weakening nicely. However, we need a break and close below the drawn in pivot support level of March to inspire confidence of a continuation of this bear trend price is in. This is again where patience, something we repeatedly talk about, comes in as patience is rewarded with high-probability entry points into the trend. Following the breakout, we would then like to see price move towards the next round number of 20 and offer further compounding opportunities. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Short
by Sublime_Trading
BR Continues To Trend Well Here at Sublime Trading, we focus on all the markets that includes FX, UK stocks, US stocks, commodities and cryptocurrencies. We do not have any attachments to any single market such as FX and to any single instrument such as Apple, gold, oil or the EURUSD. Instead, we move to where the money is by using a sophisticated scanning process to identify where the money the best trending instruments are . A US stock that was has been repeatedly brought up by our scanning process for a number of years is that of BR and one that we do have positions running on. The monthly chart above shows how well this stock has performed since the breakout in 2013 at circa $25 from a long-term period of consolidation that spanned back to 2007. Looking at the monthly chart in detail, we can see several classic features to price action movement when in a trend. - A trend to $50 following the breakout from $25. - The expected period of consolidation with $50 as the base and $60, the next round number as resistance that lasted 15 months. - A breakout from consolidation to the upside inline with the bull trend. - A retest of the $60 resistance as support following the breakout. - A trend all the way through to the next major resistance level at $100 in 2017 inline with the bull run on the indices. In the month of May, price made light work of the $100 major resistance and closed a solid $10 above it. It will be interesting to see how price now reacts given how the indices are looking and the fact that often we see retests and potentially even consolidations after price clears key levels of support and resistance. Ideally, we want to see price move towards $150, the next major round number above $100. Price confirmed another breakout last week which could be the start of the next bull move up. Earnings is not out until May 10th. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
NYSE:BRLong
by Sublime_Trading
The GBPAUD at Wekly 200SMA Resistance We last posted on the GBPAUD on March 20th when price had broken out of consolidation and was showing signs of bullish strength. Price, since that last post, continued to gain momentum but that has been halted by key resistance in the form of the weekly 200SMA. It is now a waiting game to see if this halt is temporary before the bulls regain control of the market or are we likely to see a reversal of trend back into consolidation. When price is in a trend, support and resistance levels are likely to get broken but this often involves an element of patience is we wait for price to dictate that. We also wait for, as a the minimum, the daily close above resistance to be confirmed as support. The more conservative will wait for a weekly close. We do not trade on intraday closes as these carry a much higher chance of being a fake breakout. We can see that price tried to push through the weekly 200SMA last week but the bears came in strong and took price back below. We currently do not have any trades on this currency pair but if we get a break and close above the weekly 200SMA as well as trend prove itself but clearing further resistance levels, then we will look to place long trades. This is on the watchlist but patience needed until we get the required high-probability setup that defines our edge. Remember, if you can not define your edge then you do not have one. And if you do not have one, you will get eaten by someone who does. 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 USDJPY Pullback and Bounce Off ResistanceWe last posted on the USDJPY on March 23rd when price has broken and closed below, suggesting a continuation of the bear trend. Ideally, we would have like d to have seen price trend in a neat and linear fashion but instead price pulled back to the resistance level close to the entry point of our trade. Because of the way we manage out stops, i.e. not being too quick to move them, we are still very much in this trade. Price is now recovering the ground lost on this pullback with weakness yesterday and so far today. Looking at the structure of the trend in play, it is not surprising to see these pullbacks. The should be expected as they will offer potential entry points to go short. Knowing the structure of the trend will help establish how we enter and compound and manage risk and stops. A lot can be learned by applying patience and letting price dictate what to do. The rewards are also worth the wait. We now need to see price break and close below the low of Monday this week to suggest a trend continuation and we can look to potentially add compounds. Until then, we will be standing aside. Wishing you all a very happy Easter. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Short
by Sublime_Trading
EURUSD Remains in Consolidation There has not been much change on the EURUSD since our last post on February 28th. Back then, we were waiting for a breakout and we can see that there has not been much change since then. Price has remained in consolidation and we still require a break and close above the 2018 high. Price still very much has a bullish bias to it as it is trading above the 200SMA and the 50SMA but we need a breakout to confirm a trend continuation and a move to 1.3000. We sill have a long position in play and a breakout will allow us to compound into that trade. Until the breakout has been confirmed, we will be standing aside and looking to allocate risk on better setups that are presenting themselves. As a trader, it is imperative to not have unhealthy attachments to instruments. When in consolidation, stand aside and apply patience and look else where for setups that are more likely to return you a profit. The JPY currencies are certainly looking far more interesting with breakouts taking place. In recent days, we have posted on the AUDJPY and the USDJPY . Trading is really about getting your money to work for you as opposed to working for your money. People do plenty of that in the big bad world of employment or as business owners. Be smarter in the financial markets. Understand where the best environments are, and that is where the trends are, at any period of time and get your money to grow for you effortlessly and efficiently. Trends will always have the edge over consolidating markets. Sublime Trading
Long
by Sublime_Trading
A Potential Bull Flag on The GBPCADNever expect instant gratification or for price to shoot in a straight line. This is very much a short term mentality and why many find themselves trading on lower time frames battling inconsistent results. Instead, embrace the fact that a trend is a function of time. Take fashion for example. Trends are a minimum of 3 months based on seasonal wear. Other fashion trends can stay in play for much longer. We often talk about certain fashion eras as a decade such as the 60s. It is a period of time that can last weeks, months and years. Fads, however, come and go. Trends in the market should be viewed in the exactly the same way. We last posted on the GBPCAD on March 16th when price had broken and closed above 1.8000 and triggered our long entry order. Price then moved into profit but has now pulled back to retest the resistance-turned-support level. This is classic price action movement. It should be expected and embraced as pullbacks offer opportunities. We mentioned in a previous post on the GBPUSD that we always expect price to move against us first before moving into profit. This is a perfect example. We are now waiting for price to break and close above the pivot high of this week Monday to suggest a continuation of the bull trend. Let price dictate. Never predict. Using proven techniques that have roots based on hand-drawn charts from before the internet are the techniques that are simple and robust enough to last the length of a trend. Many of the modern systems based on the advancement of technology are far more short term and are not best suited for the private trader. For institutions with their vast cash reserves, it is a different matter. Small moves will equate to staggering sums of money. As private traders, we want to understand where the money is but take advantage of the market in a way that is far more suited to the private trader. A style that is highly efficient and highly effective in growing trading accounts without the need to be glued to your computer screen. If one funding a lifestyle from short term trading then it is a compromise on money for time which and that is not what trading is about. Trading is about empowerment of money and time. Money but no time places preference on what is replaceable. Time isn't. Sublime Trading
Long
by Sublime_Trading
Breakout on The USDJPY?We last posted on the USDJPY on March 5th when price was close to setting up for a breakout entry. As often can happen at these areas, price found temporary support where the bulls came in and took price back to the pivot support-turned-resistance of September and where we had our short position triggered based on a pullback strategy. The bears have since taken control of the market and, as of yesterday, pushed through support and are now setting up for that breakout we first anticipated back on March 5th. We do, however, still need to apply patience and wait for the market to break and close below the March low to confirm the breakout and a potential trend continuation. Price has made a strong move in the direction of the bear trend but we are only in the Asian session. The picture could look very different by the end of the trading day. Long traders trying to pick a button of the trend in this month of March will now be seeing price move against them. If stops are non-existent or constantly being move further away as the bears get closer, then this could end up being one of those journeys with a bad ending. It is the undoing of many who fail to grasp the concept of the trend is your friend. If that breakout is confirmed, then we will be looking to add positions the the pullback triggered earlier this month. We would now like price to make a neat and linear move to the next key support level of 100. Sublime Trading
Short
by Sublime_Trading
Bounce off Support on The GBPUSDWe last posted on the GBPUSD on March 1st when price had pulled back to a key support zone and to the entry point of our first trade into this currency. The trade was triggered on March 15th when price broke out of consolidation with a healthy looking bullish bar. After being triggered into a trade, three scenarios are likely: - Price shoots in the direction of the trend and into swift profit giving us opportunities to compound. - Price heads towards our stop and stops us out for a small loss. (NEVER RISK LARGE.) - Price goes against us first before moving into profit allowing us to the compound. The first scenario is what people hope it would be. The second scenario is what people fear it to be. The third scenario is what it is and what people never give it the time to be. Scenario 1 can indeed happen but it is not a usual occurrence. Scenario 2 can not be avoided as losses are part and parcel of trading but that is where good risk management comes in. I'd even go further to say that risk management comes secondary to understanding high-probability environments first. The third scenario is what we tell our community members to accept each and every time a trade is placed. The GBPUSD is a perfect example of that. After first being triggered into the trade, price moved into profit but pulled back to the entry and at times in negative. To avoid the risk of being spiked out too early, we use wide stops based on a formula unique to the currency, stock or commodity we are trading. The GBPUSD is now showing strong signs of recovering having moved 400 pips since the last post and taking our trade back into positive. Price is now also trading above 1.4000 support. Price, however, needs a breakout of the pivot high of January and a move towards 1.5000 to suggest a trend continuation and when we will take advantage of compounding opportunities. Patience needed for now. Sublime Trading
Long
by Sublime_Trading
Alert to The GBPAUD BreakoutThe GBPAUD is now very much near the top of our watchlist as it has broken out of an area of consolidation that dates back to December of last year. The top of the consolidation area formed a resistance zone at the round number 1.8000 which price is now trading above for the third day in a row. Aggressive traders may already be long on this currency pair. Short traders who entered on a lower timeframe at 1.8000 resistance broke the cardinal rule of trading and that is trying to pick a top of a trend. The very nature of good trading is to follow the principle of the trend is your friend. There are, however, certain times where patience must be applied and that is at key levels of support and resistance. This is where we stand aside and wait for price to dictate a break through. Price has now indeed broken through and is suggesting a trend continuation. However, here at Sublime Trading we have a number of rules that we and our community follow to remove the subjectivity of trading. One of those rules is not to enter in on the first breakout from a period of consolidation that extends over a defined number of days as this can often be a fake breakout. The first goal of any good trader is to focus on capital protection first. Unnecessary losses all add up and can very much be avoided by applying a little patience at certain times. This is a perfect example. What we are now waiting for is a retest of the 1.8000 support zone (which is where price can often continue to weaken and reverse back into consolidation) followed by a second breakout ideally in the form of a bull flag. This will then offer an entry point into the bull trend. Once we are triggered in, we would like to see price move towards the key round number 2.0000 as the next main area of resistance, although 1.9000 could prove to be a sticking point for price too. We now want a neat liner trend to emerge that will allow us to strategically add compounds as price continues to ascend. It is now a waiting game and we must apply patience for our setup to present itself. Sublime Trading
Long
by Sublime_Trading
BIG 3 CONTINUATION STRATEGYThis strategy finds the most trades for any markets and pairs. This strategy will show you what the most accurate intraday trading indicators are, the best combination of indicators for day trading, swing trading and scalping, and the most reliable technical indicators. This strategy can be traded on any given time frame This can be used for swing trading, day trading, and scalping This strategy can be traded with any market It can be a great addition to your current trading plan Step 1 - Apply all three moving averages to your chart like this:20-40-80 sma These are the best trend indicators and will help you determine trends on every time frame. Step 2 - Once your “Big Three” indicators are on your chart, go ahead and find a current up trend or down trend. To do that simply look at where the price action is and determine if its above the moving averages or below If the price is above the three moving averages you have an uptrend. If the price is below the three moving averages you have a downtrend. If The market is flat and the price action is not making a new high or low and just saying stagnant… I would avoid this type of market because we are looking for a trending market, not a flat or “sideways” market. Step 3 - Wait for entire candle to close outside moving averages + pull back in price action + continuation of trend. Wait for the price to close below lowest moving average in a downtrend: above in an uptrend. Once you see this occur, you wait for the price to pull back and then move in the direction of the trend to make your entry. To determine this you can either go to a lower time frame or stay in the current time frame that the entire candle closed completely below or above the moving averages. The price action does not have to necessarily go back and touch the moving averages (which does occur) but you need to confirm there was pullback in the price and then a continuation of the current trend. Place your stop loss Below the bottom moving average line. Depending on what time frame you are in will vary on how large your stop is. Scalpers may have a tight 5-10 pip stop While day traders will have a 30-50 pip stop Take Profit at your discretion.
BITFINEX:ETHUSDShort
by Tradingstrategyguides
3
Potential Breakout in the Making with a PB EntryROG has potential here to be a nice winner. The volume present just recently was the strongest volume over the last year of trading. This makes me consider it could be ending volume. However, with it being so close to the new year there is always a large amount of incoming capital during this time so the breakout volume could be aligned with that. Right now this breakout is a short term failed breakout as it's closing back inside it's range. However, price has shown it has potential to breakout and it had volume when it happened. Adding to that fact that the 20 day low has not been broken in over 6 months creates a decent probability edge. If the volume was not as strong as it was I'd suggest full risk, but as the volume could be considered ending volume, I'd either look to take a smaller position or wait for a shorter time frame signal before entry. The line in the sand is the 20 range daily low. A break below that and this now becomes a failed breakout with plenty of trapped traders sending this the other direction. However, trends are innocent until proven guilty and if this pullback holds this can easily become a resting point to push higher into 2018.
NYSE:ROGLong
by CustomTradePlan
GBP/USD: Triangle Breakout? Calm before StormSimple analysis on this pair. We're looking at a triangle on a short time Frame, yet are not going to let it distract us. This trade is simple. WAIT, for the market to hit the major support band to get in Long. In the even the low volume transforms into big volatility and we breakout of the Red Descending Trend line, wait for a pullback to the Mov Avg and Get in Long. Until the market does one of these two things, don't trade this pair. Keep it safe and profitable.
Long
by ChasingTheMarket