Although in a healthy uptrend, USDCAD has run into resistance at ~1.3070 which happens to be a price level on the weekly chart that has previously been tested (as support in April 2004 and resistance in March 2009). Price closed below this level on Friday as a high test bar. Coupled with bearish divergence on the Stochastic and RSI indicator a price action...
Using bearish divergence to build a case for reversal trading on USD/CAD with the following favouring a potential short scenario: - resistance (3rd touch) at ~1.2800 - bearish high test close below resistance - price reaches and closes below 1.272 Fibonacci extension level - Stochastic and RSI bearish divergence entry - below low of high test stop loss -...
A perfect double bottom with RSI divergence has just formed on this pair. There are a couple of lower structure that you have to consider for your stop loss. Be patient and good trading !
Take a look back to check out what happens when RSI 2 is below 2.5, we have movement or a close below the lower BBand, and for an added bonus, when traditional RSI 14 is in the 40 or below range. The key to this setup is to not get greedy. Once that mid BBand line is crossed, it's time to tighten the stops. Let it ride. If you're a little cautious, sell when...
Although looking a bit choppy, the bigger picture on Gold still shows an uptrend with higher highs and higher lows. Price has touched the floor at ~1180 and rejected the trend line for a third time giving a bullish engulfing and doji bar yesterday, together with rejecting the 0.786 Fibonacci level and closing above it. Stochastic and RSI are in convergence and are...
Stalking this trade made me remember the lectures I attended few months ago as a fresher. Maybe it might not be directly linked but lets just say I turned the idea of a prisoner dilemma to the Pattern Trader Dilemma. Woke up feeling great, knowing that I'm about to continue my grind, and given today is Monday I wasn't expecting a busy day.As I was analysing the...
Similar to AUD/CAD, AUD/CHF is setting up for a short opportunity with the following in view: - inside bar following high test bar in pull back to 50ema - price rejection at resistance at ~0.8210 - price retraced to 0.618 Fibonacci level which coordinates well within proximity of resistance at ~0.8210 - Stochastic and RSI in overbought territory - Stochastic and...
The AUD/JPY daily chart displays consecutive lower highs and lower lows with a potential short setup to continue the visible falling trend (supported also by downward trendline). The current corrective phase seems to be running out of steam in initiation of a potential impulsive phase, with the production of a bearish reversal price bar: - ricocheting off a...
On the GBPUSD a Falling Wedge was drawn. In this case it could signal a bullish move. Bears are putting a lot of pressure on the cable because the rate hikes were postponed. From the technical perspective, though, a break above 1.6600 could trigger a rally to retest the trend line. A false breakout above the current resistance would be a negative signal. This is a...