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Countertrend

AUD/USD W pattern completion ideaAUD/USD has been bullish for almost all 2020, and from a weekly perspective it formed a W pattern when retesting the broken multi-year resistance trendline. Usually after a W formation I expect the price to go up and retrace to retest the previous resistance as new support. Also the price failed already twice to break the 0.774 ceiling. therefore I expect it to fall down in the next weeks until it hits the 38.2% level of the fibonacci taken on the impulse. But I wouldn't be surprised if the price goes further down around the 61.8% fibonacci level where there is also a confluence of previous resistance.
by Confident_FX
NZDUSD - Bearish GartleyWell, if my previous(link at the bottom) post doesn't convince you that nowadays in the market correlated relationship no longer works the way it was, well, have a look at this. We have a Bearish Gartley Pattern on NZDUSD but we have a Bearish Butterfly Pattern on AUDUSD, how does that work for you? The market has been volatile but it's not exactly crazy that cause the movement to be irregular. You might learn of market correlation from your mentor, but it's important to keep the information up to date. I'm waiting for a shorting opportunity on this trading setup for a counter-trend trade.
Short
by RaynLim
GBPJPY - Bearish ButterflyI know a lot of traders has these rules of not getting overexposed in a single currency, I am not against those thoughts, but you have to ask yourself if you are trading a fixed pair or you are free to choose what you feel like trading. If you are trading a fixed pair, just like me, my take on this is, if the trade setup within your rules and not against the fundamental analysis then you have to take it. You see in this trading setup we have a Bearish Butterfly that broke the previous high, previous structure or you may even call it a break and close above the previous structure, while GBPUSD(link at the bottom) has a Deep Gartley Pattern setup within the consolidation zone without break previous structure. I'm waiting for candle confirmation to engage this counter-trend trade.
Short
by RaynLim
USDJPY-Weekly Market Analysis-Dec20,Wk5An ABCD Pattern is not usually the setup I'm looked at, but when it is spotted, there's a good reason to look for a trading opportunity, once the candle has show confirmation of its trend. At this moment, we have an inverted ascending triangle and it is perfect for counter-trend and breakout traders to look at this trade. If the trendline is not broken, I'll wait for a buying opportunity and if it breaks and closes above the resistance line, I will wait for a retracement to engage the trade.
Long
by RaynLim
GBPUSD-Weekly Market Analysis-Dec20,Wk5On 16Dec, we have identified the ABCD pattern during our live session and right now, we have a Bearish Deep Gartley pattern that forms up within the consolidation zone of the ABCD pattern. No doubt, this is a counter-trend setup, it is a stronger setup then the week before as there is more indicator line up to support the pullback trade. The aggressive trader can wait for the pullback of 1.3580 to short the market, the conservative trader can wait to engage the market at 1.3608. For me, it depends on the candle formation at that level.
Short
by RaynLim
USDJPY - Counter Trend Trading & Trend Continuation TradingHi Traders! The market is in an overall Downtrend. We are going to start the Multiple Timeframe Analysis with the Weekly TF. Then, we'll analyse the Daily, H4 and H1 Timeframes too. Here is the screenshot of the Weekly Timeframe: As you can see the main thing here is the falling Wedge. The market is moving in between those two descending Trendlines. Why is this Wedge so powerful? Because the price respected this Wedge more than the monthly Support: Here we can recognize the bearish Breakout of the Support in-between the Wedge. After the Breakout it started a consolidation. If we have a bearish Breakout of the Consolidation Box, we expect the Target of 101.000. At this Level the market has moved up fastly the last two times. Let's move on to the Daily TF: This movement of the price can be devided into four pieces: The price moved in the falling Wedge The price moved in the descending Triangle The price broke out of the weekly Support and formed a "neutrale" Triangle (it is neither ascending nor descending) The price moves in the consolidation box. Now we have two possible scenarios that the price could take: - Scenario 1: The price jumpes off the Support and reaches the blue dotted line. This line represents the Level of Breakout. The idea is here to trade the Retracement Movement to make the Retest. - Scenario 2: It is also possible, that the market breaks out bearish. Than the Target would be the Level 101.000. It is important to trade here the Retest of the bearish Breakout to avoid a False Break. Let's move on to the H4-TF: Here, the price moves in a Parallel Channel. We have two possible Trading Setups here: The Counter Trend Trade In this Setup, we buy the bullish Breakout of the Parallel Channel. The reason is to profit from the Retracement Move. The Trend Continuation Trade When the market finally reaches this orange Area, we are going to wait for a Trend Reversal (Candlestick) Pattern. Then we sell the price with the Trend towards the Bottom of the big main Consolidation Box. Lastly the H1-Entry-Timeframe: Here we explain the details for the Setup for the Counter Trend Trade. As you can see the price is now in a Triangle. So, we can have two Entries: - Entry 1 is at the bullish Breakout of the H1-Triangle. - Entry 2 is the bullish Breakout of the Parallel Channel. The SL for Entry 1 is below the recent low. The SL for Entry 2 is depending on how the price gets to make this Breakout and the SL could be below one of these potential higher Lows. The Target is the Area around the blue dotted Breakout Level. We recommend to trade with a small risk if you counter trend trade. Thanks and successful Trading :)!
by swissmoneymakers
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