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TSLA: Bullseye (again)! Next Key Points to watch [UPDATED].• In our previous post, when TSLA was around $195 I set a target around $179 - $177, if a top sign appears. It happens that TSLA did a Spinning Top, and it dropped sharply afterwards. Now it is below our original target – the link to my previous public analysis is below this post, as usual; • Now, TSLA is just bearish, and so far there’s not a single bullish sign indicating a bottom; • If TSLA reacts and closes above the $177 today, it might bounce to higher levels, like the 21 ema, or even to the $198 again; • In the lack of bullish reaction, we can assume that it’ll seek the gap at $170; • TSLA has been a very easy stock to trade, as its movements are all technical and precise. For now, let’s pay attention to these key points. I’ll keep you updated on this, as usual. Remember to follow me to keep in touch with my daily analyses!
NASDAQ:TSLA
by Nathan_The_Finance_Hydra
3
'RESUME' the trend journey via 'PAUSE' candleWe all have experienced the 'TRAIN' journey and similar to that in the stock market we have the 'TREND' journey. In the 'TRAIN' journey we have stoppages in between our destination called stations and like in the 'TREND' journey we have stoppages called levels. And then, among the levels, the most frustrating one is 'pause' where stock price show opposite candles that is against the trend and where most traders are hunted. This post is all about the 'pause' and how to use it to enter the trend and finally reach our destination through the 'TREND' journey. Definition:- As the name suggests pause candle is the candle formed in between the trend, the change is usually opposite the trend i.e. if the underlined script is moving in an uptrend then the pause candle will be of negative change and the color will be red and vice-versa. The pause candle indicates a pause in fresh positions by market participants and an entry chance for players expecting reversals. Also, it's an opportunity for new players to enter the trend i.e. for those who have missed the initial trend. Rules or Characteristics of a pause candle:- 1. Prior candles should be aggressive i.e. large candles of the opposite color. 2. It is generally of very small size as compared to the previous one and of the opposite color. 3. Volume is considerably low as compared to previous candles. 4. The RSI level of the spot where this candle originates is usually between the band of 35-75 which confirms that trend has not come to exhaustion. The psychology behind the pause candle:- In the market everything has a cause and a reason similar pause candle also conveys its message to the market players. The generation of the pause candle signifies that there is fatigue among the participants who were driving the stock or are taking some break. Also, it alerts that new hands have entered into the trend and are trying to offer resistance. Those who are looking for reversals spot this candle and enter into trade with the hope of reversals, they are generally weaker hands. Bigger hands those who were the driving force of the trend also want the new player to enter the trend so that they hunt them down and resume the rally at a lower price. How to trade pause candle:- Now, as small players, we don't know what goes inside but try to predict the message through the candle. If a pause candle is formed it doesn't mean the exhaustion of trend or reversal rather indicates a pause in fresh market position. But, here the aggressive trader enters with trades opposite to the trend. At this stage, two cases arise, note talking for an uptrend:- -> The next candle's high crosses above the high of the pause candle: Maximum times this is the case that arises, here the candle after the pause candle crosses the high of the pause candle now what does this indicate? The indication is that the trend drivers or bigger hands are active again and those who have taken a position against the trend are trapped and will try to escape hence, the move will be much sharper as compared to the initial trend. How to benefit in this case? When you spot such a pause candle that is formed after a continuous trend set it to alert candle and wait for the next candle to form. If the next candle crosses the high of the pause candle take the position along the trend and your stop would be the low of the pause candle which is generally too small and ride the sharper trend which is usually equal to the initial one. -> The next candle's low crosses below the low of the pause candle: Though not arises usually sometimes it does occur, here the candle after the pause candle crosses the high of the pause candle now what does this indicate? The indication is that the trend drivers or bigger hands are in the backseat and are not seeing further upside also there is a chance that they can book profits at this level. How to benefit in this case? When you spot such a pause candle that is formed after a continuous trend set it to alert candle and wait for the next candle to form. If the next candle crosses below the low of the pause candle take the position against the trend and your stop would be the high of the pause candle which is generally too small and ride the reversal trend which is usually half of the initial one. This case comes under the reversal candlestick patterns on which earlier an article was published by me but here we are concerned about a pause candle after which rally resumes. Note: The only constraint is to identify the correct pause candle for which you can refer to the above-said rules. Sometimes the candle after the pause candle crosses both the high and low of the pause candle in that circumstance you have to check the color of the candle, for uptrend it should be green then you can take the position else if it's red then wait for the next candle, and vice-versa for the downtrend.
Education
by Chaser30
SPX: Be aware of this KEY POINT! Is this a bottom?• The index did exactly what we described yesterday, as we nailed another support level on the index, at 4,028 (it hit 4,026, but we aren’t that perfectionists). The link to my previous analysis is below this post, as usual; • Now the index is trying to react, and the 4,028 is just where the 21 ema is (1h chart); • It is losing strength, but if it closes above the 38.2% retracement, it might bounce a little bit more; • However, if it loses our dual support level made by the 4,028 + 21 ema, then it’ll probably seek the next retracements; • The 61.8% is the last one, and only if the index loses it we might see a sharper correction in the daily chart, to its 21 ema; • Speaking of daily chart, it seems it triggered a Spinning Top candlestick pattern, which might bring more correction ahead; • For now, let’s pay attention to the dual-support level in the 1h chart, as it all depends on how it’ll react around this area today. I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analyses!
SP:SPX
by Nathan_The_Finance_Hydra
1
#GBPNZD selling opportunityPrice has been trapped in a rangy market for quite some time, but as it can be seen finally managed to break the consolidation area to the downside which means more downside move can be followed. this kind of formation base on DOW theory area called line formation and by the way they are considered as very important when they break to the one side. As it can be seen we are already in down trend and breakout of the range area from below shows that a trend may potentially resume. But also it should be in mind that the breakout can always turn to be fake signals and also price can still come higher and take out liquidity from above too. But for now and to keep things simple we need to be looking at the nearest resistance area to the price which is a structure point, because it used to provide support for price before and now that price broke this area to the down it could provide resistance. and as you can see price already came back to this area once and rejected from. Now and in the second try if price reject to the downside from this area after a liquidation you can say that this area would hold and selling is an option.
Short
by mohemati
#USDCAD another sell opportunityPrice has formed a V-TOP chart pattern formation as you can see in 4H timeframe and also managed to close below 4H low which means that our structure now turned to bearish again. due to V-TOP formation price formed a bearish engulfing candle in Daily timeframe which is a strong signal for bearish move and also as we can see we are in overall in bearish move so we can interpret this daily candle as an continuation signal for higher wave cycle. Now that we have bearish bias we should be looking for areas which potentially price can tap into in lower timeframe like 1H or lower, take out some liquidity and turn to the downside again.
Short
by mohemati
2