Groundstoneholdings
Morning Technical Newsletter EUR/USDWeekly Gain/Loss: -1.23%
Weekly Close: 1.1602
Weekly perspective:
Last week candle formed as BEOB – engulfing bar at resistance as it means that on 1.1800 a lot of sellers jump in the short positions. On Monday this week price just ranging from the H4 resistance at 1.1622 to the H4 support at 1.1570.
Daily perspective:
If we zoom to the daily chart we can see that we have daily BEOB engulfing bar at resistance too, so the trend is really strong and we can expect that price will continue to the downside, as the first target we can have support at 1.1540. If we break below this strong support 1.1540 we can expect fast price fall to the next support level 1.1430.
Areas of consideration:
For intraday position, we can wait for the triple top retest of H4 resistance 1.1622 and jump in short position with the very small amount of pips to risk.
We can look for a short position on the first two resistance mentioned below:
Resistance 1: 1.1620
Resistance 2: 1.1700
For the targets we can use the first two supports mentioned below:
Support 1: 1.1540
Support 2: 1.1430
Morning Technical Newsletter EUR/USDEUR/USD:
Let's check Eur/Usd the most tradable forex pair.
Weekly perspective:
Last week pair moves from the high 1.1815 to the low 1.1570 so in the range of 240 pips. At the and of the week we have formed BEOB candle as strong signals for more bearish trend for this week.
Daily perspective:
As we already said that we have BEOB on weekly chart we also have, BEOB on four days ago on the daily chart, so we have a really strong downside trend. For the next target, we can have a support at 1.1530 (60 pips).
Areas of consideration:
We can look for a short position on the first two resistance mentioned below:
Resistance 1: 1.1620
Resistance 2: 1.1650
For the targets we can use the first two supports mentioned below:
Support 1: 1.1570
Support 2: 1.1530
Today’s data points: German retail sales m/m; FOMC member Bostic speaks; US ISM manufacturing PMI.
Education post 2/100 - How to trade triangle pattern?Symmetrical Triangle
A symmetrical triangle is a chart formation where the slope of the price’s highs and the slope of the price’s lows converge together to a point where it looks like a triangle.
What’s happening during this formation is that the market is making lower highs and higher lows.
This means that neither the buyers nor the sellers are pushing the price far enough to make a clear trend.
If this were a battle between the buyers and sellers, then this would be a draw.
This is also a type of consolidation.
In the chart above, we can see that neither the buyers nor the sellers could push the price in their direction. When this happens we get lower highs and higher lows.
As these two slopes get closer to each other, it means that a breakout is getting near.
We don’t know what direction the breakout will be, but we do know that the market will most likely break out. Eventually, one side of the market will give in.
So how can we take advantage of this?
Simple.
We can place entry orders above the slope of the lower highs and below the slope of the higher lows. Since we already know that the price is going to break out, we can just hitch a ride in whatever direction the market moves.
In this example, if we placed an entry order above the slope of the lower highs, we would’ve been taken along for a nice ride up.
If you had placed another entry order below the slope of the higher lows, then you would cancel it as soon as the first order was hit.
