Gold Hits Resistance at 68% FibGold is hitting short term resistance at the 68% resistance from last year's high to this year's low. Price is also at the upper BollingerBand. Next move, up or down, will be telling...
Bollinger Bands (BB)
Natural Gas Drops Below Upper Bollinger Bands to End 6 Week RiseOn Tuesday, Natural Gas dropped .10 points to close just above the 21 day moving average. This is a potential end to the last move up which began on Feb 22 of this year. If price can break through the 21 day moving average, I would expect price to continue selling off until a tag of the lower Bollinger Band which now sits at 2.9.
The potential downturn is supported by 2 consecutive red Heikin-Ashi candles and the haDelta indicator now turning red.
Gold Rallies and Pushes to Upper Bollinger BandGold rallied hard today, gaining almost 20 points on the day. On the way to the new monthly high for April, Gold shot past last Friday's high and didn't pause as it continued it's ascent to the outer Bollinger Band, which is set at 2 Std Dev from the midline. Monday's red Heikin-Ashi candle is now well in the rear-view mirror as well. And all along, the haDelta indicator did not flash red, staying a solid blue since April 4.
Most of the time, after a big move in Gold, the market pauses for a day before giving any signal of the next move. I am watching for a pullback to the inner 1.5 Bollinger Band (which is at 1270) which is also at the same level as the Keltner Channel (yellow). A nice rejection of that level would indicate that a new up wave in the precious metal is about to begin.
Bullish Heikin-Ashi chart
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
Disney's 20DMA Magic Carpet Ride Over?Disney has been riding the magic middle bollinger band (20 DMA) carpet ride since 10/21/2016. Today we closed below it. Every time there has been a close below it the next day has been positive. However, we are at the top of a long-term channel and based on the weekly indicators, the stock has been overbought for some time now (see below)
I think the next few days will tell us if the stock is going to continue falling back to the bottom of the channel or if it will push through (channel looks awfully like a bullish flag, so this could just be consolidation).
More chance for shorting on £ We can expect bounce up from fib 0.5 level up to 0.382 where also bollinger middle band will be touch. This gives us a great place to put in short position with target around support line at 1.2260
Have a nice weekend.
EUR / AUD South Our friend € feels kinda tired. I feel for shorting when price comes up to 0.5 and hit bollinger middle band. Set stop-loss above last highs. Set primary target to 1.40440, secondary all the way back down at 1.39600
Good luck guys and girls.
Gold Stays Range-Bound After Friday's KnockdownOn Monday, Gold closed up .8 points but did not recover any of the momentum after last Friday's explosive move up and then equally explosive sell off to end the day and the week. After that action last Friday, Gold continues to trade within a tight range that started on March 22. It is obvious that the Bollinger Bands are contracting and the haDelta is poised to cross over to the downside. In addition, Monday's Heikin-Ashi candle was red (see chart below). The overall outlook, at this point, is Neutral.
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
Gold Recovers but Continues to Move SidewaysGold ended Wednesday down .6 points, making a late day recovery after selling off strongly to start the day. So while gold did close above the 7 day moving average, price continues to move sideways. The haDelta indicator is also still bullish but is showing definite signs of slowing down and even possible changing course. And if, in fact, price does move down, the haDelta would be showing a major diveregence between price and the last 2 peaks ( see yellow line )
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
Prepare for launch south. Euro was week last week. I believe that euro will continue to show more weakness soon. So prepare to entry short on this pair. This should go down when hit middle bollinger band. Happy trading everyone.
Gold Falls Below Support LevelsGold closed down 3.7 points on Thursday, falling through support levels at the 7 day moving average and the inner Bollinger Band. While it's not clear if this is going to be a long or short lived downward correction, I am banking on price hitting the 21 day moving average at 1232.90. As I've said before, when price breaks through the 7 day moving average, the is a high statistical probability that price will then touch the 21 day moving average.
As for the Heikin-Ashi signals, we now have two consecutive red Heikin-Ashi candles and the daily haDelta indicator has turned red.
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
Gold Stays Bound within Monday's RangeGold closed down 2 points on Wednesday, once again finding support at the confluence of moving averages and the inner Bollinger Band. While not moving lower than support, price stayed contained within Monday's candle and is setting up for a potential 'Rising Three Methods' pattern. This pattern starts with a long green body that is followed by three small body days, each fully contained within the range of the high and low of the first day. Then the fifth day closes at a new high. If this plays out, then Friday would be the day for price to hit the outer Bollinger Band which is now at 1267.30.
While the indicators are still green, the Heikin-Ashi candles are showing a potential end of the up move which you can see on the chart above. Certainly the Heikin-Ashi doji on Wednesday is not inspiring a lot of confidence for the bulls.
I recommend protecting your profits and tightening stops.
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
Gold Closes Up Slightly After Intraday Touch of SupportGold closed up 2 points on Tuesday even as the US Dollar gained ground fueled by strong consumer data. After the news came out, the precious metal slowly slid down from a high of 1258.4 to the low of 1247. But there it met support from both the 7 and 8 day moving averages and the inner 1.0 Std Dev Bollinger Band.
I am still waiting for the tag of the upper Bollinger Band, which is currently @ 1266.60. All signals are still positive.
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
Incoming fall to $4.00/$3.00?Today I entered a put option with a 53 day expiry because the Bollinger Band and 20 MA was broken.
I expect price to fall between $4.00 and $3.00 within the next 15 to 45 days.
Max risk is about $160.
Gold Gains and Penetrates Mid Bollinger BandGold moved higher today, gaining 10.2 point to close at 1255.7. After penetrating the middle Bollinger Band @ 1255.4 to hit a daily high of 1261, price closed just underneath that middle Bollinger Band. I am still expecting a tag of the outer Bollinger Band at 1266.10, which is my first profit target on this bull trade that started with an entry at 1220.
All signals are bullish, including the Heikin-Ashi candles.
Disclaimer: This post is for educational purposes only. Trading is at your own risk.https://www.tradingview.com/x/Jf4JUTxT/
Long on the EURUSDI entered this with the intention of catching wave 3 and I executed the trade when I saw the hammer hit the 0.618 retracement point and it nicely seemed to be bouncing away from the low of the bollinger band
AUDNZD Price pushed through my Bollinger Bands and then retraced through the 20 MA. I am looking for price move back to the 20 on the daily time frame where I will be looking to short on a lower time frame. I plan to hold the trade until it hits the 200 MA.
I am taking advantage of my broker's leverage and how much margin is required to place the trade. In terms of AUDNZD my broker will allow me to risk 14% of my account per unit of movement. Since this is possible I will be able to place a 0.19 lot with a $10 account. This position size will give me about 6 - 7 pips before being margined out (I use this as a stop loss). At most, I will lose $10 per entry attempt but most likely will only lose about $7.50 per entry attempt due to stop out requirements put forth by my broker.
My profit target is about 300 pips away at the 200 MA. Given the position size, I will stand to make about $400.
I will make this entry attempt as long as price stays below the 20 MA and doesn't break to up or down. If a break up is made, then I will wait for price to break below the BB and 20 MA to consider an entry. If price breaks to the low, then I am no longer interested in the trade until price breaks above the 20 MA and then below it again.
Good luck to everyone.
CSCOPrice pushed up through BB and then below them. Then price moved below 20 MA. This gives me reason to believe a significant short movement may be imminent.
Therefore, I bought a 30 day put option (Apr17) on the movement.
I stand to lose $108.49 if the option does not fulfill the movement I anticipate.
Take profit target is at 200 MA.
Gold Ends the Week FlatOn Friday, Gold spiked up above 1250 but then sold off as the day drew to a close, to close at 1243.3. On the week, Gold was up 14.3 points. All indicators are bullish and, Friday's Heikin-Ashi Doji aside, I am looking for price to at least tag the 1.5 Bollinger Band or higher. Reversing now without even a tag of that 1.5 Bollinger Band would be unusual. So until we get some red color on the chart, I will be maintaining my long position.
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
Bollinger Bands and the Coast to Coast MoveOne of my favorite uses of Bollinger Bands is to participate in what I call a 'Coast to Coast' trade. This is when price breaks from one of the outside Bollinger Bands and then reverses and moves towards the opposite Bollinger Band. Along the way to completing the opposite tag, price will often react off the 21 day moving average. You can clearly see that on the chart below. After the first tag of the 21 day moving average, price re-bounded and instead of moving towards the other outside Bollinger Band, continued and hit the upper Bollinger Band a second time. And then, a week or so later, price once again rebounded of the 21 day moving average and reversed to hit the outer Bollinger Band one last time.
After the third hit of the outer Bollinger Band, price did correct and quite quickly hit the opposite band. That sell off seemed to be enough to propel price back up. Also you can see that one both the last move down and the current move up that price didn't even pause at the 21 day moving average.
If you study historical price action off the outer Bollinger Bands, you'll see that 3 tags of one band is pretty much the max. When I see that, I do think counter trend. In this case that was confirmed by the haDeltas both turning red.
Disclaimer: This post is for educational purposes only. Please trade at your own risk.
Gold Rebounds off the 7 Day Moving AverageGold dipped lower in the overnight session but then rebounded off the 7 day moving average. Price is now at the top of the weekly highs and looking to move above 1250.
I've added a second haDelta indicator which is set to track the weekly Heikin-Ashi candles. Now both the daily and weekly are aligned in blue. This is a great way to stay in the trade and to filter out noise. For example, yesterday was a down day but even though the sma on the daily haDelta moved down, the overall trend remained up. The Heikin-Ashi candles also remained Green.
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
Gold Pauses and Moves SidewaysGold traded down 3.6 points on Thursday and while it was a down candle, the bull move is still supported by a green Heikin-Ashi candle. It would also be unusual for price to not move past the inner Bollinger Band. As you can see on the Heikin-Ashi version of the chart, the uptrend still appears to be strong;
The weekly chart below shows a possible transition to a bull market. This weeks candle is the second green one in a row (unless there's a big sell-off tomorrow) and is a strong move above the 21 week moving average. And while the haDelta indicator is still red, you can see the delta moving average poking above the 0 line, a strong harbinger that the downward trend may be ending.
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
Natural Gas Moves SidewaysNatural Gas today stayed range bound, unable to break the 3.087 price. That price is also at the middle Bollinger Band. Support for the day is provided by the 7 day moving average, the purple crosses on the chart. There are some signs that price wants to go higher. The Heikin Ashi Delta indicator is blue, signaling an upward move. And usually you would expect a touch of the outer Bollinger Band, currently at 3.16. However, if price can't move up in the next couple of days, then I would expect another downward leg.
For now, I am flat and remain neutral.
Disclaimer: This post is for educational purposes only. Please trade at your own risk.
Gold Extends Rally into 6th DayOn Wednesday, Gold continued to climb higher, extending its rally for a 6th straight day. On today's chart, I've put back my triple Bollinger Band setup so we can get a better idea on what price is doing. We are currently at the inner Band, which is set to 1.0 Standard Deviation from the 21 day moving average. It looks pretty certain that gold wants to move to the upper Band to complete, what I call a 'Coast to Coast' trade.
The Heikin-Ashi Delta indicator at the bottom also shows that the current trend is continuing to be bullish.
Disclaimer: This post is for educational purposed only. Please trade at your own risk.
