Pushing downward, price has retraced suitably into a location of resistance on the chart, a static level of ~0.7080 and the 8 ema closing as a high test bar/bearish pin bar. Price has rejected both the 38.2% and 50% Fibonacci retracement levels.
entry - below low of high test bar
stop loss - above high of high test bar
target - previous support level near 127.2%...
Shorting GBP/AUD as today's high test bar has shown resistance to ~2.0870, the falling trend line and 50 ema all of which have lined up close enough to a tee. Stochastic and RSI also show bearish hidden divergence .
entry - below low of high test bar
stop loss - above high of high test bar
target - at previous low or lower
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Upon producing a new low price has shown bearish continuation than a bullish turnout that was outlined in my previous post. A pull back into the 20 ema, falling trend line and 0.618 Fibonacci level, and closing as a high test shows further downside to follow in price action.
Bullish divergence, a visible caveat, however, is suggestive of possible further bullish...
After showing some resistance to the 1.3350 price area price signals bearish behaviour to follow. A high test bar offers an entry point and Stochastic bearish divergence brings confirmation for a potential drop in price.
entry - below low of high test bar
stop loss - above high of high test bar
target - 50 ema for 1:1 reward-risk profile or previous support level...
Reasons for taking a short position:
high test bar rejecting a previous level
Stochastic in overbought territory
Price action below Golden cross
entry - below low of high test bar
stop loss - above high of high test bar
target - at previous low or lower
Close of price as a high test bar below a tested level (at ~1.1050) in conjunction with the 8 ema resistance and an apparent "kiss of the trend line" after a break below close below prompts an aggressive set up to the short side with at least a 1:1 reward-risk profile.
entry - below low of high test bar
stop loss - above high of high test bar
target - at...
Short set up/entry reasoned from:
- high test bar close
- resistance at ~2.1470
- trend line resistance (4th test)
- rejection around 50 ema
- 50% retracement and close below
- oscillator bearish hidden divergence
entry - below low of high test bar
stop loss - above high of high test bar
target - at previous low or lower (after break of and close below previous low)
- aggressive down trend (price trending below 8 ema)
- close as a high test bar after:
- retest of level after break (1.0800)
- retest of 8 ema
- 0.382 Fibonacci level rejection and close below
entry - below low of high test bar
stop loss - above high of high test bar
target - next support area/1.272 Fibonacci extension at ~1.0530
A bit late in posting, but since my entry short hasn't triggered, I though I'd write a quick post. So price met resistance at the 1.3350 area and closed underneath as a high test bar. A short entry signal is pronounced with the accompaniment of oscillator divergence on the Stochastic and RSI indicator. As it is Friday, there is a lull in the markets as usually is,...
Another short set up on AUDUSD since downward momentum on the previous set up (idea linked) failed is on offer. The present set up comes after a deeper pull back, organic in a sense, into the 50 ema which also lines up with a previous level of support (~0.7250), now acting as resistance, and the 0.618 FIbonacci level. Price closed as a high test bar. Oscillator...
On the S&P 500 and NASDAQ100 indices, closing as a high test bar in the resistance zone, and a bearish engulfing bar on the FTSE100 (UK100) stock index, a sell setup is in order suggesting potential bearish continuation on these three (CFD) indices, following the recent sell off on major indices.
1. S&P 500
The rejection/resistance zone on the S&P 500 comprises...
Price is in an aggressive trend on AUD/USD as shown by its location in referece to the moving averages. The present setup takes advantage of this aggressive downtrend backed by a shallow retracement into a previous level where price has found resistance (0.7070). Resistance is also seen at the 8 ema and raised seller interest is evinced by the formation of a high...
Using bearish divergence to build a case for reversal trading on USD/CAD with the following favouring a potential short scenario:
- resistance (3rd touch) at ~1.2800
- bearish high test close below resistance
- price reaches and closes below 1.272 Fibonacci extension
level
- Stochastic and RSI bearish divergence
entry - below low of high test
stop loss -...
Seeing today's high test bar close rejecting a past level acting as both support and resistance within close proximity of a Fibonacci cluster (38.2% and 50%) drawn from two previous swing/cycle highs and rejecting the falling trend line for a third time highlights this end of day set up as a potential selling opportunity. Recent lower highs and lower lows...
