look for bear divs aftre 4h div validationafter 4h bear div likely retracement chances in lower timeframes
Countertrend
GBPCAD Counter Trendline BreakoutWe expect further upside on this pair, signalled by the breakout of the counter trendline. We can also see the breakout, close and retest of price above a key level further supporting our directional basis.
Navigating the Bearish Shark PatternGBPJPY currently positions itself at the Bearish Shark Pattern. While the pattern is not yet confirmed, aggressive traders might be tempted to seize the opportunity early, either to ride the potential high or out of fear of missing the move.
It's important to note that a shark pattern could offer as many as three entry points.
I'm intrigued to know your trade plan for GBPJPY. How do you intend to approach this setup? Share your insights below!
Exclusive Insights Inside!Last week, I issued a warning: "it's not a good idea to short the USDJPY!" Despite months of anticipation, the bull run on USD is not yet complete. If you're still waiting for a shorting opportunity, keep an eye on the 4-hourly chart for the development of the bearish shark pattern—a potential entry point for this counter-trend trade.
Now, let's discuss trade plans and your thoughts on the USD trend. What's your approach to USDJPY, and where do you see the US Dollar heading? Share your insights below!
Dive into GBPUSD Trading InsightsGBPUSD currently exhibits a Weaker Bullish Trend on the weekly chart, introducing interesting dynamics.
On the 1-hourly chart, a bearish shark pattern emerges, presenting a counter-trend trading setup. Simultaneously, the 4-hourly chart showcases a bullish bat pattern within the buy zone.
My preference in this scenario is clear—I favor the bullish bat pattern on the 4-hourly chart.
Now, I'm curious about your preference. What's your take on these setups? Feel free to share your insights below!
Money Making Opportunities in EURUSDEURUSD is currently navigating a weaker bullish trend on the weekly chart, adding an interesting layer to the market dynamics.
On the daily chart, a bearish flag pattern setup unfolds, creating an intriguing scenario. Furthermore, the 1-hourly chart reveals a bullish bat pattern, while the 4-hourly chart showcases a bearish bat pattern.
In the week ahead, I'm poised to engage in whichever trading setup comes to fruition first.
Now, I'm keen to hear about your trade plan. Do you carry any trend biases, and if so, what factors influence them? Your insights matter—please share them below!
IoTeXUSDT - Trendline Breakout Idea ! Hey guys! It's been over 100 days that IoTeX has been in a downtrend. This could be yet the bottom to be confirmed. We need a good breakout of the trendline to the upside with nice strong volume otherwise this could go back into ranging more for a long time or even continue falling despite the bullish bounce off this key monthly level.
TRADING PLAN AS FOLLOWS:
First we need to see a solid trendline breakout.
First TP would be 0.020 a psychological level. However, it could get pierced through so we need to monitor price action once it gets there.
My desired level is the weekly mean reversion area where price has struggled in the past and it's also a key flip zone but in the weekly timeframe. This area has been a magnet for price so it could get there again. TP here would be around 0.02470 - 0.02680
If the trendline breakout fails, close position at breakeven IF price goes sideways and no direction whatsoever or it hits stop loss.
I suggest to SPOT rather than futures as this is a counter trend trade set up. Risk is higher unless you follow rules strictly per your plan.
Hope you find analysis useful!
Kina 🙏
Potential Bearish Setup on Weekly ChartThe Bearish Fib-3 Bat formation on the Weekly chart certainly catches the eye, particularly with the presence of a long-shadow candle.
However, it's important to acknowledge that the trading setup remains unconfirmed. Waiting for confirmation may entail missing out on potential profits, to the tune of 200 pips.
Here are some strategic considerations:
Option 1: Shorting Opportunity from Lower Timeframes
One approach is to anticipate a shorting opportunity on lower timeframes, thus potentially capitalizing on a downside move without waiting for full confirmation.
Option 2: Trading Within the Range (1-hourly Chart)
Both sellers and buyers find opportunities within the 2 zone. This entails engaging with the Resistance at 150.49 and the Support level at 149.00.
The pivotal question arises: What's your trade plan? Your insights matter. Please share your perspective below!
Potential Retracement Week AheadThe overall setup for EURUSD leans towards a Weaker Bullish stance. However, given the impact of Friday's NFP Candle, I anticipate a series of correction moves in the upcoming week. Therefore, I'll be ready to execute whichever trading strategy emerges.
Potential Strategies:
Daily Chart - Bearish Flag Pattern:
The Potential Bearish Flag Pattern is nearing the sell zone. You can opt to wait for candlestick confirmation, possibly during Tuesday or Wednesday's opening. Alternatively, consider heading to lower timeframes to await a double tops setup before entering a short position.
Support Retest - 1-hourly Chart:
Trend traders might want to keep an eye on the market's retest of the support level on the 1-hourly chart, signaling a potential buying opportunity.
Now, the crucial question: Which side of the chart aligns with your trading strategy? I'm eager to hear your perspective. Please share your insights below!
Navigating AUDJPY's Correction: What Lies Ahead?The AUDJPY currency pair has been in a bullish trend since late March, commencing at the level of 86.065. As of the current analysis, it seems that the pair is undergoing a corrective Wave 4, indicating a countertrend phase. This correction is composed of subwave A and subwave B within the larger context of Wave 4.
Presently, the pair appears to be in the process of forming Wave c of Wave 4, and my projection suggests that it is likely to decline in order to complete the Wave 4 correction. Two possible scenarios are: A pullback to 95.251 price zone and a trendline break at 94.321 to the downside. My anticipated price regions for the completion of this correction are identified at 92.038 and 90.46. Once this correction is completed, I expect the bullish trend to resume.
A breach of the price level at 96.969 to the upside would invalidate this wave count and the associated outlook.
Cheers!
Amazing Shorting OpportunitiesUpon careful examination of the chart, it's apparent that the majority of retail traders are poised for a buying opportunity, making any talk of shorting seem unconventional.
Yet, a different perspective emerges upon closer inspection.
Observations:
I've discerned indications that suggest a contrary approach may be prudent.
Trading Strategy:
I'm personally awaiting a shorting opportunity on the forthcoming completion of the Bearish Crab Pattern, projected at 1.3926. This stands in contrast to the previous crab pattern, offering a fresh tactical choice.
For those still inclined towards a buying stance, a retest of the trendline on the 1-hourly chart might present the awaited opportunity.
Now, the crux of the matter: What's your call? Your insights carry weight. Please share your perspective below!
Navigating Bullish Momentum Amidst Potential Caution SignsIf you caught my last week's analysis, along with the accompanying article on Trading View, you can dive deeper into the details by clicking the link.
In my previous analysis, I emphasized the significance of waiting for the Bearish Crab Pattern confirmation on the Daily Chart before considering a shorting opportunity.
Now, let's delve into why this is crucial:
It enables you to distinguish between astute analysis and a sales-driven approach often seen in the financial world.
If you happened to miss the initial shorting opportunity, there are three viable options to consider:
Option 1 : A retest on the Bearish Crab Pattern on the daily chart at 150.43, presenting another potential shorting opportunity.
Option 2 : A retest on the Bearish Shark Pattern on the 4-hourly chart at 150.45. These levels may appear close, but they entail different timeframes for trading confirmation.
Option 3 : You might opt to await a retest of the trendline on the 4-hourly chart before engaging in this counter-trend trade.
The critical question now arises: Which of these three options aligns best with your trading strategy, and why? I'm eager to hear your thoughts. Share your insights below!
Mth-long Consolidation for Profits
GBPUSD currently exhibits a Weaker Buy signal, accompanied by a 5-week long consolidation phase.
Trading Decision Dilemma:
The month-long consolidation prompts a crucial decision: Will it be a buying or selling opportunity?
Buying Opportunity:
For those inclined towards a buying stance, watch for the completion of the Bullish Butterfly Pattern at 1.1951 for a potential entry.
Aggressive Selling Approach:
Traders seeking a more aggressive move may consider the Bearish Butterfly Pattern on the 1-hourly chart, providing an opportunity to short at 1.2180.
Now, the pivotal question arises: Bull or Bear? Which side aligns with your trading strategy? Share your thoughts below!
Navigating the Weaker Bullish Setup
The EURUSD displays a Weaker Bull setup on the Weekly Chart.
Aggressive Approach:
Opting for an assertive stance by seeking a shorting opportunity.
Option 1: Daily Chart - Bearish Flag Pattern
Waiting for a retest at the resistance level of 1.0620 before considering a short position
Option 2: 1 Hourly Chart - Type 2 Bearish Deep Gartley Pattern
Awaiting a retest at 1.0584 as part of the shorting opportunity strategy.
I'm intrigued to hear your perspective. Which option resonates with you, and what's your rationale? Feel free to share your insights below!
Analyzing for Aggressive Shorting and Buying Setups!
USDCAD presents multiple potential opportunities, with a current focus on a shorting prospect.
Weekly Chart Influence:
The weekly chart displays a Double Top Retracement, guiding the overarching trading decision.
Approach Considerations:
While an aggressive trade might opt for an immediate shorting entry, I'm choosing a more cautious approach.
Short Trade Options:
Daily Chart: Eyeing a Type2 Bearish Shark Pattern for a potential retest at 1.3744.
4-hourly Chart: Noting a Bearish Bat Pattern completion at 1.3770.
15-minute Chart: Considering a Bearish Shark Pattern projected to complete at 1.3733.
I'm interested in your perspective. Which of these setups resonates with you, or do you have an alternative approach in mind? Share your insights below!
Warning Signs Amidst the Bullish Trend
The overall trend on GBPUSD continues to be bullish, making it an attractive option for buyers.
Long Trade Scenario:
Daily Chart: A potential Bullish Shark Pattern nearing completion at 1.1937 suggests a buying opportunity.
Short Trade Considerations:
Personally, I'm inclined towards a shorting opportunity. Two potential setups catch my attention:
1-hourly chart: A key resistance level at 1.2174.
Daily Chart: A Bearish Butterfly Pattern may complete at 1.2244.
I'm keen to hear your thoughts. What's your trade plan? Comment down below.
Potential Buying OpportunityAs you may know, AUDCAD is currently on a Bearish Trend, which means that buying at this pair is a counter-trend move.
However, I wanted to let you know that the Bullish Shark Pattern has been completed on the Weekly Chart with an RSI Divergence.
There are two ways to engage with this pattern. The first is the Bullish Gartley Pattern, which has warning signs that it is completing on the 4-hourly chart at 0.8603. The second is completing on the 1-hourly chart at 0.8650.
Given these options, which one would you prefer to choose? Let me know your thoughts and we can discuss further.
Exploring Shorting OpportunitiesUSDJPY is currently on a Bullish Trend, but I am keeping an eye out for a shorting opportunity.
After analyzing the weekly chart, I have identified a bearish bat pattern that could potentially be a good opportunity to short the market. We just need to wait for a candlestick confirmation and for the market to close at 146.96 to seal the deal.
Alternatively, there are also bearish crab patterns on both the 4-hourly chart at 150.43 and the 1-hourly chart at 149.81 that could be worth considering, depending on how aggressive we want to be with this trade.
It's worth noting that this trade is a bit tricky, as we may need to be patient and persistent in poking the bear until it starts to give us the bear run we're looking for. If we're too quick to shift stops to entry, we may get stop out a few times, but that doesn't necessarily mean losses for the trade.
Overall, I believe we have a good plan in place and I'm excited to see how this trade plays out. Let me know if you have any questions or concerns.
Navigating the Bullish TrendBased on the Weekly Chart, GBPUSD is on a Bullish Trend, but that doesn't mean we can't look for a shorting opportunity. I've been eyeing the Upsize Trade, which is perfect if you love to extend targets.
Recently, the Bearish Bat Pattern has been confirmed on the 1-hourly chart. I'm waiting for the market retest back to 1.2245 for a shorting opportunity. If things go well, I might stretch my final target to the Bullish Shark Pattern completion on the Daily Chart at 1.1937.
Just wanted to keep you in the loop. Let me know if you have any questions or concerns.
Countertrend then Continuation to upside after 2Day OrderBlock If you missed getting in short, here's a 2nd opportunity for a longer run. Speculating price will reject 0.86890 to take out SSL below at 0.86115 (2 Daily OB mitigation). Then this would be a great entry for long (swing trade).
If willing to participate on this short idea, suggestion is to do so at a reduced risk (lower lot size) on the shorting (0.86890) to the 2 Day OrderBlock mitigation. Then enter at a regular risk (whatever your risk appetite is) on the continuation long.
A Promising Trading StrategyThe star trade of the week. I'm currently waiting for a shorting opportunity on the bearish shark pattern off the weekly chart.
Trading off the weekly chart directly would send my initial risk through the roof. While we could always reduce our trading size when trading off the higher timeframe, it doesn't make sense to me.
I'll be waiting for a bearish 5-0 pattern to complete at 110.56. My initial stop-loss is at 110.96, which is approximate -40pips or -400USD/lot.
My first target is at 109.96, which is approximately 1,000USD/lot.
However, there's also a bullish shark pattern that has completed at 109.96, so there's no reason why you can't engage on that as well.
Remember, it's important to plan your trade and trade your plan. Never follow any trader blindly.
Retesting Previous High, Potential Shorting OpportunityWe've identified a potential opportunity for counter-trend traders in the form of a Bearish Fib-3 Bat Pattern completion on the Weekly Chart. This could be a great chance for traders to engage in the trade and make a profit.
However, we understand that the initial stop may be too large for some traders to handle. That's why we suggest waiting for the setup to form on the lower time-frame, such as the 1-hourly chart, for a shorting opportunity. You could wait for a retest at 149.44 for a shorting opportunity. The initial Stop-Loss at 149.74 (-30pips) or approx. -300usd/lot.
Target1 could be at 148.76 (+68pips) or approx. +680usd/lot. But keep in mind that it's always important to plan your trade and not follow any trader blindly. We encourage you to have a solid plan in place before making any trades.
Trend-Following vs Counter-TrendTrading in the cryptocurrency market can be an exciting and potentially profitable venture. However, it is essential to approach trading with a clear understanding of the risks involved and the potential rewards. One important concept that traders must grasp is the risk reward ratio. This ratio compares the potential profit from a trade to the potential loss, providing a measure of the risk associated with a particular trading strategy.
The risk reward ratio is calculated by dividing the potential profit by the potential loss. For example, if a trade has the potential to yield a profit of $200 and a potential loss of $50, the risk reward ratio would be 4:1. This means that for every $1 at risk, there is the potential to gain $4. Traders often use the risk reward ratio as a tool to evaluate the viability of a trading strategy and to make informed decisions about which trades to enter.
Understanding trend-following trading strategies
Trend-following trading strategies are based on the idea that the price of an asset tends to move in a specific direction for an extended period of time. Traders who employ trend-following strategies aim to identify and capitalize on these trends by buying when the price is rising and selling when the price is falling. This strategy assumes that the trend will continue and that profits can be made by riding the trend until it reverses.
One of the key advantages of trend-following strategies is that they can be relatively simple to implement. Traders can use technical indicators, such as moving averages or trend lines, to identify trends and generate buy or sell signals. This simplicity can make trend-following strategies appealing to both novice and experienced traders.
However, trend-following strategies also have their drawbacks. One of the main challenges is identifying the start and end of a trend. Trends can be volatile and subject to sudden reversals, leading to potential losses if the trader enters or exits a trade at the wrong time. Additionally, trend-following strategies may result in missed opportunities if the trader is unable to quickly react to changing market conditions.
Pros and cons of trend-following strategies
Trend-following strategies have several advantages that make them attractive to traders. One of the key benefits is the potential for significant profits. By riding a trend, traders can capture a substantial portion of the price movement and generate substantial returns. Additionally, trend-following strategies can be relatively easy to implement, requiring only basic technical analysis skills.
However, trend-following strategies also come with their fair share of disadvantages. One major drawback is the potential for missed opportunities. Trends can be unpredictable, and a trader may enter a trade too late or exit too early, resulting in missed profits or unnecessary losses. Another challenge is the increased risk of drawdowns during periods of market consolidation or when trends reverse. Traders must be prepared to manage these risks and adjust their strategies accordingly.
Analyzing the risk reward ratio in trend-following strategies
When analyzing the risk reward ratio in trend-following strategies, it is essential to consider several factors. First, traders must determine the potential profit from a trade by identifying the target price or the expected price movement based on the trend. This can be done by using technical analysis tools or by setting specific profit targets.
Next, traders must assess the potential loss by setting a stop-loss order. This order automatically closes the trade if the price moves against the trader's position, limiting the potential loss. The stop-loss order should be placed at a level that reflects the trader's risk tolerance and the volatility of the market.
By comparing the potential profit and the potential loss, traders can calculate the risk reward ratio. A higher risk reward ratio indicates a potentially more profitable trade, as the potential gain outweighs the potential loss. However, it is important to note that a higher risk reward ratio also implies a higher level of risk, as the potential loss is larger.
Understanding counter-trend trading strategies
In contrast to trend-following strategies, counter-trend trading strategies aim to capitalize on price reversals. Traders who employ counter-trend strategies look for opportunities to buy when the price is falling and sell when the price is rising. This approach assumes that the price will reverse direction and that profits can be made by entering trades against the prevailing trend.
Counter-trend strategies can be more challenging to implement compared to trend-following strategies. Traders must be able to identify potential reversals and accurately time their entries and exits. This requires a deep understanding of market dynamics and the ability to interpret price action and technical indicators effectively.
Pros and cons of counter-trend strategies
Counter-trend strategies offer several advantages that may appeal to traders. One of the main benefits is the potential for high-profit opportunities. By entering trades against the prevailing trend, traders can capture significant price movements and generate substantial returns. Additionally, counter-trend strategies can be particularly effective in choppy or sideways markets, where trends may be less pronounced.
However, counter-trend strategies also come with their own set of challenges. One major drawback is the potential for false signals and whipsaws. Price reversals can be short-lived and quickly revert back to the prevailing trend, resulting in potential losses if the trader enters trades prematurely. Another challenge is the increased level of complexity involved in implementing counter-trend strategies. Traders must have a deep understanding of market dynamics and the ability to interpret price action accurately.
Analyzing the risk reward ratio in counter-trend strategies
Analyzing the risk reward ratio in counter-trend strategies requires careful consideration of the potential profit and potential loss. Traders must identify potential reversal points and determine the target price or expected price movement based on the counter-trend. This can be done using technical analysis tools or by identifying key support and resistance levels.
Similarly, traders must set a stop-loss order to limit potential losses if the price continues to move against their position. The stop-loss order should be placed at a level that reflects the trader's risk tolerance and the volatility of the market.
By comparing the potential profit and the potential loss, traders can calculate the risk reward ratio. A higher risk reward ratio suggests a potentially more profitable trade, as the potential gain outweighs the potential loss. However, traders must also consider the higher level of risk associated with counter-trend strategies, as the potential loss is larger.
Comparing risk reward ratios in trend-following and counter-trend strategies
When comparing the risk reward ratios in trend-following and counter-trend strategies, it is important to consider the strengths and weaknesses of each approach. Trend-following strategies typically have a higher success rate, as they align with the prevailing market direction. This can result in a higher number of winning trades and a more favorable risk reward ratio.
On the other hand, counter-trend strategies may have a lower success rate but offer the potential for larger profits. By entering trades against the prevailing trend, traders can capture significant price movements and generate substantial returns. However, the risk reward ratio may be less favorable due to the potential for larger losses if the price continues to move against the trader's position.
Ultimately, the choice between trend-following and counter-trend strategies depends on the trader's risk tolerance, trading style, and market conditions. It is important to carefully evaluate the risk reward ratio of each strategy and consider other factors such as market volatility, timeframes, and personal preferences.
Factors to consider when choosing a trading strategy
When choosing a trading strategy, it is important to consider several factors beyond the risk reward ratio. Here are some key factors to keep in mind:
Market conditions: Different strategies may perform better in different market conditions. Consider the current market trend, volatility, and liquidity when selecting a strategy.
Risk tolerance: Assess your risk tolerance and choose a strategy that aligns with your comfort level. Some strategies may involve higher levels of risk and potential drawdowns.
Time commitment: Different strategies may require varying levels of time commitment. Consider your availability and lifestyle when choosing a strategy.
Trading style: Determine whether you prefer short-term or long-term trading, as this will influence your choice of strategy.
By carefully evaluating these factors and considering the risk reward ratio, traders can select a strategy that aligns with their individual goals and preferences.
Analyzing the risk reward ratio is a crucial step in evaluating the viability of a trading strategy. Both trend-following and counter-trend strategies have their own set of pros and cons, and traders must carefully consider the risk reward ratio associated with each approach. By understanding the potential profit and potential loss, traders can make informed decisions and manage their risk effectively. Additionally, it is important to consider other factors such as market conditions, risk tolerance, and personal preferences when choosing a trading strategy. By taking a comprehensive approach, traders can increase their chances of success in the dynamic and ever-evolving cryptocurrency market.
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