Black_Magic_Capital

Black_Magic_Capital Updated 

I think most traders find August quieter than the rest of the trading year due to lower volatility and ranging markets. For myself, trading opportunities are not as easy to come by but they are still there. Here's a backtested FX:AUDJPY breakdown from last Thursday. Following a bearish 1h break of structure during Thursday's Asia session, price rejected at a 1h...

Black_Magic_Capital

Last week I was looking to get involved with this FX:AUDJPY short opportunity. My higher time frame perspective seemed to be in line with the market structure but I didn't quite get the reading on the lower time frames... On the 1h, price was making a series of higher highs and higher lows, seemingly pulling back towards the 4h supply zone. Following the second...

Black_Magic_Capital Updated 

Disclaimer - I did not enter this position but I'm sharing my thoughts on how I would have and what my outlook is for next week. Let me know what you think! EURUSD had been pretty bullish on the 1h with some progressive upward moves. Price seemed to be stalling and breaking down at the beginning of this week signalling some exhaustion and a possible distribution....

Black_Magic_Capital

A follow on from my last post where I mentioned I would remain vigilant of any short opportunities on $FX:EURUSD. This pair has been trending nicely to the downside over the past week or so. After a heavy bearish break last Thursday (see my last post), price continued to head lower in search for buying pressure. The first sign of sustained buying was found at the...

Black_Magic_Capital

After a frustrating start to the week, persistence paid off catching a nice long on EURUSD... HTFs - On Monday, price reached the daily demand zone with a rejection and then began to move sideways. This was an early indication that price could be building a cause (accumulation) to potentially reverse to the upside. See the daily screenshot. s3.tradingview.com...

Black_Magic_Capital

I've recently been toying with the idea of adding GBP/JPY to my trading pairs, so I've been observing the price action to understand how it behaves. GJ dropped like a rock at the end of this trading week! Here's how I would have gone about executing this position... At the end of February, bearish momentum stalled at HTF lows within the demand zone . On two...

Black_Magic_Capital

Executed a short position on EURUSD today which ended up being a break even trade; but here's why I was looking short. After bearish momentum towards the end of the year, price has been ranging sideways for a few weeks which is likely an accumulation for a bullish reversal or a redistribution for a continuation of downside pressure. Yesterday, price had already...

Black_Magic_Capital

EURUSD looks like it is setting up to provide some great momentum heading into 2022. The daily and 4h timeframes are still showing bearish market structure forming lower highs and lower lows, however, price has now paused and started moving laterally at a weekly demand zone. This is key. Price action looks to have the classic features of an accumulation or...

Black_Magic_Capital

On the higher times 4h and daily, EU is still bearish forming lower highs. Yesterday price hit a 4h supply zone which is significant in the sense that bearish market structure could continue from here. After an initial reaction to the downside, price pulled back on the intradays by forming higher lows but failed to break the high formed yesterday. Currently short,...

Black_Magic_Capital

This is a good example of the relationship between supply and demand, accumulation and distribution (see the 1m chart insert from Friday 17th September). Price is constantly fluxing between the two forces deciding who has control of the market. At the point where the recent high fails to break, this is a strong signal that sellers could be in control and shorts...

Black_Magic_Capital

HTFs - Right at the 3rd touch of a daily expanding formation approaching and breaking highs very correctively. This larger structure could be acting as a continuation from the previous bearish momentum. LTFs - Price becoming more and more corrective approaching outer structure and highs signalling sellers coming into the market. Price could reverse from...

Black_Magic_Capital

HTFs - Larger sideways range formed on daily timeframe following a significant move down on HTFs. Price action near the top of HTF structure for momentum to possibly kick in and push price down. LTFs - Patterns within patterns. Larger ascending channel approaching highs and outer structure. This ascending channel broke to upside and now looks to be forming a...

Black_Magic_Capital Updated 

HTFs - Looking left there is a clue in the heavy bearish momentum which is then followed by a sideways correction. Basically a simple impulse correction on higher time frames and anticipating a further impulse. Price has been ranging for a few weeks but looks to have completed following the 3rd touch rejection at the top of the pattern LTFs - price has...

Black_Magic_Capital

HTFs - Overall expanding formation seen on the daily and weekly time frames. Price has already broken significant highs, all time highs in fact and has broken somewhat correctively. An ascending channel pattern extension has formed following the upside break and at the 3rd touch of the larger expanding formation | LTFs - The ascending pattern extension...

Black_Magic_Capital Updated 

HTFs - price has been in corrective phase for a few weeks and has formed an ascending channel with a slight expanding element which can be clearly seen on all time times. Highs that were previously acting as resistance have now been broken correctively | LTFs - 3rd touch of the expanding formation is being approached with price forming a smaller ascending...

Black_Magic_Capital Updated 

HTFs - From daily down to 1H, price has been corrective for weeks and has formed an ascending expanding formation. Weeks prior, there was heavy bearish momentum which is clear when zooming to higher time frames | LTFs - Internal structure is clean with a middle section showing wave behaviour. Clue is the ascending channel at the end of the structure with the...

Black_Magic_Capital Updated 

HTFs - earlier in the year this index went into free fall. It's "bounced back" but the overall state of price has been very corrective. Separating the patterns, I can see an ascending wedge which moved into an ascending channel and is now very near significant highs | LTFs - I'm just focused on the ascending channel section. There seems to be an expanding...

Black_Magic_Capital

HTFs - this has been lining up for quite some time now, weekly shows an ascending channel which was completed at the 3rd touch and price rejected just short of long term highs (see screenshot). Should add that significant highs from May 2017 are already convincingly broken. There has been a decent move down, followed by a sideways HTF structure acting as a flag...