Here I have zoomed in on the weekly chart to highlight the price action from the lower swing point (fractal) to the higher swing point. As I mentioned in my last published idea on this currency pair, a downtrend will continue until it is interrupted by a higher low. Looking at the chart, I have identified a higher low. However, let me further say that although...
After analyzing the monthly chart I have moved to the weekly chart to continue my analysis. Here, I see price action continuing to make lower highs and lower lows as indicated by the series of black crosses. A downward trend is identified by a series of lower highs and lower low Fractals, I prefer to call these swing points as fractals has another meaning in...
According to my trading plan, I am to start the analysis of a currency pair by looking at the weekly or monthly chart. Here, I am looking at the monthly chart and have drawn a down trend-line acting as resistance. It takes two Swing Points to draw a trend-line, and it takes a third swing point to validate it. Once a trend-line is validated, I expect price to...
Take Profit hit today for a nice 3:1 Reward to Risk ratio trade. Two things about todays candle: 1. Latest 4HR candle is a tall candle. Tall candles are usually retraced by as much at 50% on average. 2. Price action is now far removed from the 20EMA. Normally when price moves too far from mean value (20EMA) price will retrace back to mean value. For these...
EURJPY has formed a bearish rejection candle bouncing off 10 period EMA and has closed below the low of the previous doji candle this is called a "Doji Close" reversal candle pattern. The Doji Close pattern is an indication that price is now ready to move lower. I have set my Stop Loss at 5 pips above the high of the rejection candle I have entered a Short...
Here is a second opportunity to enter a short trade in this market: Stop Loss: 6 pips above the "Engulfing" candle. Short Entry: 4 pips below the "Engulfing" candle. Take Profit: 3:1 reward to risk ratio If this pair is starting a downward trend then it should be making lower highs and lower lows and should not take out the Stop Loss. If the Stop Loss is taken...
These candles are a representative example of what a bullish rejection candle looks like. I have also added rules to identify a bullish rejection candle. These rules can vary somewhat but the more the rules are relaxed the less the candle acts to reject lower prices.
These are the 10 most volatile currency pairs and have kept their volatile positions since 2014. Volatility is defined as the average daily range of the candle (high to low). For example GBPNZD has on average moved 201 pips at day from its high to its low. So by waiting for a currency pair to post a swing point we can then estimate how many pips a currency pair...
It is my belief based upon watching all the chatter on the Forex public forum that traders pick a time frame to trade and look for a place to enter the market. The choice to enter any market should not be the traders' first choice but the last option. Before deciding to enter any market, the trader should first build up a high-quality case before placing a...
It is my belief based upon watching all the chatter on the Forex public forum that traders pick a time frame to trade and look for a place to enter the market. The choice to enter any market should not be the traders' first choice but the last option. Before deciding to enter any market, the trader should first build up a high-quality case before placing a trade;...
After mapping out the major support and resistance lines on the monthly chart I move to the daily chart. Here I see a red engulfing candle bouncing off major resistance. This indicates this market is ready to move lower. I now expect price to move lower over the days and weeks ahead as it works its way down to major support. During this downward trek I also...
I start my analysis of EURJPY at the monthly time frame so I can map out the major structure of this currency pair. Here I see price has now moved up to the down sloping trend line acting as major resistance. From this point forward I expect price to bounce off this line of resistance and to start moving down to the down sloping support line. Note: Price will...
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These candles are a representative example of what a bearish rejection candle looks like. I have also added rules to identify a bearish rejection candle. These rules can vary somewhat but the more the rules are relaxed the less the candle acts to reject higher prices.
This is a day trade. Entry should hit and profit target should hit in one day. Price action making lower highs and lower lows indicating a downward trend. 10 EMA below 20 EMA indicating bearish momentum. Latest candle opened at high of 60 min session and closed near the low indicating bears are active but not in complete control. Latest candle also opened at 10...
Monthly chart in downward trend. View monthly chart in Ideas (www.tradingview.com) --Daily chart shows GN in a downward trend as noted by lower high and lower low along with 10 EMA below 20 EMA . --Yesterday's candle rejected higher price as noted by long upper wick rejecting prices above 20 EMA . --Yesterday's candle closed near its low showing bears in control...
Monthly chart indicates this currency pair is in a major upward trend. Daily chart shows this currency pair in an upward trend. Yesterday this pair was corrective as noted by the red inside candle. Today's candle has made a lower high as noted by its lower candle wick. Today's candle is now green indicating buyers have taker over. This is the perfect place to...
The long trade setup I published 5 hours ago did not work out as my stop loss got hit. No problem, that's what stop losses are for so that when a trade doesn't work out I am stopped out with not a big loss. So now I have re-setup the trade: I have set my Long Entry at 4 Pips above the high of the trading range for a long entry on a breakout of the trading...