As the graph illustrates the trend according to Dow Theory (HH & HL) and creates consistent green soldiers on 1H TF, hence going long on XAGUSD.
Furthermore, the price bouncing back from the significant support and the chart making a rising trend-line backs the bull rally.
The graph follows a bearish trend with consistent red candles after hitting Double-Top at 78.08. Furthermore, Bearish ABCD Pattern and Divergence reinforces the bearish trend.
Making a short trade with a risk of 2% and placing two TPs with ratio 1:4.
Long Wick on 1-Day Time Frame indicates seller losing momentum. After giving respect to the previous support zone the chart initiates an upside rally.
Furthermore, the chart is following the dow theory while making HHs & HLs and rising lower trendline.
The above indicators depict a bullish trend. Hence, will wait for the price to hit the rising lower trend line...
1. Dow Theory (LH & LL)
2. Descending Channel - Short-Term Bearish
3. Consistent red candles moving towards a new LL
4. Already tested the trendline
1. Might test support at 96.18
1. Dow Theory (HH & HL)
2. Bounce from 0.382 Fib Level
3. Seasonal Pattern: Bullish in Jan
If resistance breaks rally will continue.
1. Hanging Man
2. Resistance Level is tested twice at 24.24
3. Bearish ABCD Pattern
4. Bearish Divergence
If, trendline breaks; the trend will go bearish.
Note: According to the seasonal...
The chart has defined its low at 96.54, as we can see a Tweezer Bottom form at the end increase the chances of a reversal. Will wait for another green candle and make a long move.
TP 1: 96.950
TP 2: 97.370
As seasonal pattern can be detected in December. Every December since 2013 has a green candle except two, the year 2014 and 2016. Hence, I choose to go long on EURUSD. Adding SL and TP using Dow Theory.