Price made a sharp move upward and found resistance at the .9700 round number level.
Price tried to break through that level 5 times with no success, price drops below the
8/21 EMA's and make a shallow pullback....finding resistance at the 8-EMA.
We could be looking at a nice 60 min Price reversal with a target at or...
Short-term price movement has found possible resistance at the 1600 round number handle.
If this does end up being a H/S reversal pattern, target would be the swing low point at or
near 1.1530 level.
After seeing a massive rally, the correction is underway. Price breaks the Daily 10-EMA in dramatic fashion,
printing a huge swing-low, leaving a large wick in the wake of the move down. However price snaps back
and finds resistance and bounces off the (DAILY) 10-EMA. You then have the next move down, price making a lower
low with the next pull-back again...
MONTHLY/WEEKLY TF IS IN AN "ASCENDING TRIANGLE" PATTERN. PRICE IS REJECTING OFF UPPER RESISTANCE LEVEL, PUTTING IN A DOUBLE-TOP
AS SEEN ON THE DAILY CHART. PRICE IS IN A RETRACEMENT WHICH HAS CREATED A TEMPORARY "RANGE" ON THE 4HR CHART. PRICE JUST BOUNCED
OFF THE 4HR CHART RANGE HIGH, AND IS IN A PULL-BACK. A SHORT ENTRY CAN BE TAKEN NOW WITH STOP LOSS JUST...
Nice long uptrend we've had on this pair. Now momentum is shifting and it's
most likely going to reverse and make a move to the downside. Before it does
however a few nice trades might be taken while it's in this RANGE.
We have 2 upper touches and 2 lower touches creating a well defined
and valid channel. I'll be looking to go short this week if price makes...
HERE IS AN EXAMPLE OF HOW I PERFORM A "TOP DOWN ANALYSIS" ON A CURRENCY PAIR
THAT I TRADE. A BIG PART OF HOW i DO MY ANALYSIS IS TO IDENTIFY IF PRICE IS IN A
TRENDING MARKET, RANGING OR CONSOLIDATION. NOW OF COURSE ON LOWER TIME FRAMES
IT WILL APPEAR DIFFERENT. I USE THE DAILY TIME FRAME AS MY 'ANCHOR CHART'.
THIS MEANS THAT I TRADE IN THE DIRECTION OF THE...
WHEN DOING YOUR TOP-DOWN ANALYSIS ON THE DAILY TIME FRAME.
WE TRADE WHAT WE SEE, NOT WHAT WE 'WANT TO SEE'. WE HAVE
TO IDENTIFY WHAT THE MARKET IS DOING PERTAINING TO PRICE ACTION
AND TRY TO SEE IF A HIGH-PROBABILITY PATTERN IS PRESENT, THAT
OFFERS US AN "EDGE."
Here is an example of a large M-PATTERN that just completed
on the AUD/CAD Daily Chart.
I labeled all (4) legs of the pattern.
REMEMBER DON'T ENTER SHORT ON THE ENTRY LEG
UNTIL YOU GET A HA CANDLE CHANGE AND THEN ENETER
ON THE CLOSE OF THAT CANDLE.
STOP LOSS GOES JUST ABOVE SWING HIGH
DURING TIMES OF HIGH VOLATILITY, WHICH CAN PRODUCE QUITE A BIT OF NON-TRENDING CHOP. M AND W PATTERNS CAN BE SEEN QUITE FREQUENTLY, IF YOU KNOW WHAT TO LOOK FOR.
THE FIRST LEG OF THE M OR W IS TYPICALLY A VERY STONG IMPULSE LEG, WITH LITTLE CONSOLIDATION OR PULL-BACKS. ONCE THIS INITIAL LEG ENDS, LOOK FOR A PULL-BACK LEG TO FORM A "V" NOTCH AT THE BOTTOM FOR W...
Whenever entering a trade I want to know what's going on as far as price action on the Daily chart. I feel the daily chart is the most significant as far as displaying the current market sentiment. Once you identify what type of price action the daily time frame is in, then you can determine how and when you will enter a trade on the lower time frames. At least...
I now mainly trade (3) types of setups. Trending, Range and Pattern. This is an example of how I scan for price action that is currently in a Range. Each day I scan through about 19 Pairs that I trade and this 4-View option allows me to scan the Daily, 240M, 60M and 15M all in one glance. What's great about this example is there are 3 of the 4 times frames...
Description of trade set-up on chart.
The idea behind this trade set-up is when you have a strong uptrend or downtrend
and you have the 50-SMA angled UP or DOWN. When price shoots up or down
penetrating the 50-SMA . . . Meaning price is going against the 50-SMA Trend, it usually
is temporary and goes back through the 50 to resume the strong trend it was in.
Well here's one of those trades that has all the things we look for all lined up.
1. Strong downtrend with a pullback to (2) key resistance levels: 100-MA & .618 Fib Line.
2. We saw price break through the 50-MA and pinball off the 100-MA on the last major move.
3. Stochastic (which i use a a 'cycle indicator' is showing price is at the "peak" of a cycle and...
i am not a strict advanced pattern trader. Meaning if the angle/length of the X to A leg or the distance from A to C is a little greater or less than what its supposed to be to validate the pattern, ill still trade it with tight stops.
in this case once we see price meet resistance in the area of C, we can enter short with a stop loss just above A area to...