DreamsDefined

DreamsDefined

Apple (AAPL) has been on a hell of a bull run since January 2019 - up 123%. However, a few recent signs point to increased volatility and the potential for price to pause in the short to medium term. First up, trend line steepness has been increasing. Each leg has been rising at a faster rate, and while this can be considered a sign of strength, the most recent...

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USD/CAD hit a strong resistance level overnight (the level was formed a few years back and has provided S/R at multiple points since then - not every time, as nothing is perfect, but enough to show the market respects it. Given that we've identified a resistance level that has been validated by the market, we then look for additional confirmation. In this case,...

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CAD/JPY is currently sitting at a Support zone, and has formed a bullish momentum divergence. Take Profit Level 1 is at the next Resistance zone, while Take Profit Level 2 is at the subsequent one. TP1 is a quick scalp, TP2 is a long-term movement that will take days/weeks to play out. Stop loss depends on your RR ratio, account size etc. I have a fairly tight...

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EUR/GBP breached a strong support & resistance (S/R) zone in one H4 candle. We can therefore expect price to move back into the zone due to some profit-taking on a Friday, as well as the larger money increasing their position before pushing price lower. Look for price to move into the 0.9050 - 0.9100 zone before continuing its descent. This would be a favourable...

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Okay, so this one isn't so much a trade idea/signal, but more of a "this is interesting, let's watch and see" analysis. GBP has been falling for a long time now. It depends on your time frame and how far you want to go back, but definitely for the last few years. However, something interesting has been happening over the last few weeks (barring the Boris...

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AUD/JPY has formed a bullish momentum divergence at a long-term support/resistance zone (defined by my algo - see Related Ideas for more info). Short-term support is in the 71.50 area - so look for a retest of that level. It could be a good entry point. Short-term resistance is in the 72.30 area. Once that level is cleared there's not much until we start hitting...

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We've got a bit of a strange one here today... EUR/CAD is shaping up for a near textbook bullish divergence pattern AND it's sitting on a long established S/R zone (defined by my S/R algo - see the Related Ideas). Why is that strange? Well, basically because EUR is so weak at the moment. It's just broken multi-year lows, so unless that's a false breakout...

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Today we have some supplementary analysis to my recent EUR/CAD divergence setup (see the Related Ideas below). If we zoom out and take a long-term strategic view of the market, some interesting areas jump off the chart: Firstly, there's a long-term rising trend line (price based) that is formed by lows in August 2012, April 2015, and to a lesser extent...

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EUR/NZD has been on a sustained bear trend for a month now. Price has risen from the low formed on 22 July 2019, and is currently sitting at a point of strong resistance, with an added dose of bearish momentum divergence. Assuming an entry at the current price (1.6790) I would consider the trade to have failed at 50-60 pips from here (1.6845ish). I've...

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Welcome! Today we'll have a look at an interesting development in the S&P500, as well as look back at some past history making events. First up, I'm not predicting anything. I'm not in the business of predictions because it's a fools errand. I trade what happens, and until something happens all of this is academic. However, I am in the business of making money,...

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Welcome to Part 2 of the series examining algorithmic support and resistance (S/R). Today we'll check out Apple Inc (AAPL), and how the algorithm defined S/R zones over the last 15 years. So, as I mentioned in Part 1 (see the Related Ideas link below), the algorithm incorporates a number of factors to determine, in real-time, viable support and resistance zones....

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AUD/USD (AU) is potentially set for a move higher. While I haven't entered a trade yet (waiting for confirmation), there are a number of converging factors: AU is sitting at a point of support (trend-line support). NZD/USD (NU) has not followed AU, and appears to be in the process of forming a small double bottom at near-term support (200 Day WMA). NU may ...

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Trading divergences is a very common technical analysis strategy, but it comes with one big problem: the most common divergences (not hidden) trade against the trend. This means that new traders can often get into trouble by constantly looking for, and trading, against a dominant trend. Here's an idea to help you become more profitable over the long-term:...

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Okay, so today we have a potential correlation divergence trade. As the chart shows, GBP/NZD formed a lower low at Yearly Camarilla S3 Support, but GBP/AUD formed a flat double bottom. Why is this significant? Basically, because these two pairs are highly positively correlated - 90% on a Daily AND Monthly time frame. What one does, the other is pretty much...

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USD/CAD is currently stuck in a 120 pip range (on the H4 time frame), and has been for the last month. Seasonality would suggested that the USD should weaken (leading to a drop in USD/CAD ) in late July/early August, and begin a bearish period until October. However, we're currently seeing a strong bullish divergence momentum phase. This is significant as we can...

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Welcome! Here's a super simple chart, and strategy, which can help you get started in your trading journey. Trading strongly correlated pairs and looking for divergences is hardly an industry secret. It's a standard technique, and one that is heavily employed by large institutional investors. Basically, correlation means that certain pairs move in a similar...

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Welcome! Today I'll be demonstrating the efficacy of a method I've determined to identify and trade support and resistance (S/R) zones in real-time. Normally, traditional technical analysis requires a S/R zone to experience multiple validation events (touches, reverses, bounces), before it becomes tradeable. The downside to this method is that numerous...

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I rarely trade directly against a strong and intact trend, so consider this "hesitant advice" rather than anything concrete. The DXY measures USD strength against a basket of currencies and weightings, and is closely watched by every serious market analyst. Therefore, looking at it directly for technical patterns and signals provides a trader with "what if"...