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Kylemcquade

AUDUSD Short - BAMM TheoryGood morning, This week I am aiming to trade more on the 1 hour charts- mainly to fill in the time in between larger price fluctuations; I will be looking for movements that suit the larger time frame! On the 4 hr chart we have a long crab pattern but price still has some way to go until it meets the D point. Above you can see a short position on the 1 hour, that would support this- We have a bearish BAMM (Bat Action Magnet Method) formation. For this to form, we need a valid bat pattern (check) whilst we wait for price to break and close below the B level (0.782). At such time we will enter our short position and hold until price reaches the final D point (PRZ). Risk should be at least 1:2, as always.
Short
by KyleMcQuade
1
CAD/CHF - Bearish 5-0Hello, Traders! I hope everyone is having a great weekend! I'm VERY excited to share and keep an eye on this set up with you guys. Today, we are looking at a bearish 5-0 pattern on the 4H chart with the CAD/CHF. Price seems to have started to reverse between 1.13-1.618 at B point. Lets look for price to break the current trend when the markets open back up to continue its way to C point. The measurements for a valid 5-0 pattern are detailed below. B: 1.13 - 1.618 C: 1.618 - 2.24 D: 0.50
Short
by cdschultheis15
AUD/USD - Harmonics Meet Technical StructureHello, Traders! Today, we have tremendous confluence on the 1D AUD/USD chart with a Bullish Crab and Reverse Head and Shoulders pattern . As price is making its way down to touch the neckline of the Head & Shoulders pattern, a Bullish Crab pattern is shown with D point right at the same reversal zone, while meeting a historically strong rising trendline. Risk:Reward - 1:3 The measurements for a valid crab pattern are detailed below. B: 0.382 - 0.618 C: 0.382 - 0.886 D: 2.618 - 3.618 Final X to D: 1.618
Long
by cdschultheis15
1
EURGBP LongHi guys. This is not a pattern I look at often, however, today I'm looking at a long position at the end of a harmonic 5-0 completion! Price has hit support on the weekly time frame and should find some security at this level. EUR GBP is not a pair i've wanted to trade as of late as per the obvious political sentiment, then again, I don't trade the 5-0 that often either. There also seems to be a small double bottom on the 4 hour chart. If price is to push 30% into my profit one, I will as always move my SL to my entry level. So lets see how this works out, this one's just for some fun! 5-O ratios X:B = 1.13-1.618 A:C = 1.618-2.24 B:D = 0.5
Long
by KyleMcQuade
GBPNZD Short - Bearish BatShark week continues- once again on a GBP pair. I am expecting the pound to drop across the market in the next couple of weeks! This bearish shark is reaching completion at a key resistance zone on this pair, as are most of the GBP pairs at this time. GBP has seen some growth over the past couple of weeks, so I am expecting a sell off to balance out supply/demand. See more below. Risk:Reward @ 1:3 as always! Stop loss at 1.90172 with a target price of 1.80631- an entry directly on our PRZ would bring a return of just over 700 pips! Hopefully price edges a little higher and we can take a good entry- I will not enter below a D point. Bat Ratios X:B = 0.38-0.5 A:C = 0.382-0.886 B:D = 1.618-2.618 X:D = 88.6%
Short
by KyleMcQuade
4
BAMM Theory EurCadSome generic analysis and a possible trade set up for everybody to look at - Bat Action Magnet Method. This theory dictates that when price begins a potential C-D wave, a break of the resistance of the 38.2-50% retracement of the initial impulse wave, price will continue to rise until the previous high. The key level in this setup I believe is 1.477. A close above here should see price continue to rally; the potential profit zone is clearly marked. Like any other trade, risk:reward should be at least 1:2. It is not uncommon for a trader to wait for a retest of support after resistance is broken before entering into a position. Price has began to range between support and resistance on the 4hr chart so this pair is worth keeping an eye on! This is simply a generic overview. I will be taking the short position should price reach the overall 88.6% retracement of the original impulse wave. Bat Ratios X:B = 0.38-0.5 A:C = 0.382-0.886 B:D = 1.618-2.618 X:D = 88.6%
by KyleMcQuade
USD/CAD - Harmonic Confluence + TrendlinesTraders! Hope everyone has had a great and profitable week! The markets just keep getting better and BETTER! Today, we have MAJOR confluence. I couldn't ask for more....well, maybe I could... Here we have the USD/CAD on the 1D chart with a bullish AB=CD and bearish 5-0. The trendlines add additional confirmation, given the strength of each reversal. What we can really take away from this set up is not just where price will reverse, but adding the trendlines, we can predict WHEN. As always, I highly recommend account management on all trades. The measurements for a valid 5-0 pattern are detailed below. B: 1.13 - 1.618 C: 1.618 - 2.24 D: 0.50 The measurements for a valid AB=CD pattern are detailed below. C: 0.618 - 0.786 D: 1.272 - 1.618
Short
by cdschultheis15
GBPAUD ShortCould be the beginning of shark week as a few formations are starting to present themselves across the market- on this occasion I am looking at a bearish move on the GBPAUD. Price is approaching a level where we have seen previous support/resistance. That said, as always with this setup, there is no fixed PRZ. Reversals occur when the total retracement to the X level is between 88.6% and 113%. Furthermore, the extension from B:D must be between 161.8% and 224%. Entries for this pair are very vague and down to experience in dealing with candlesticks. Personally, before looking at candle sticks for reversals, I aim to have my entry as close to the 113% X:C extension as possible in order to bring maximum returns. Minimum entry for any trade should be at least 1:2- I prefer 1:3. A general overview of previous support/resistance can be seen in the notes below. Looking forward to nest week, we have the release of the BoA Interest Rate (03/10) and the Australian Trade Balance (05/10). I will be keeping my eyes on these closely whilst scoping my entry point as these may well make or break this trade. Shark ratios A:C = 1.13:1.618 B:D = 1.618:2.618 X:D = 0.886:1.13
Short
by KyleMcQuade
2
XAU/USD - Harmonic ConfluenceHello, Traders! Today, we have GREAT structure forming on GOLD! Here, we have a bullish shark and a bearish 5-0 pattern. I personally, LOVE these set ups... GOLDEN RATIO X2! Price has temporarily retraced at a support & resistance zone, which is also X point, but the down trend continues. With these types of set up, we ALWAYS look for the DOUBLE PLAY: 1. BUY the Shark 2. CLOSE at the 50% retracement 3. SELL the 5-0 SUPER excited to share this one with you guys and to watch this structure develop with you all. PLEASE set your stop loss appropriately, paired with proper account management. The measurements for a valid shark are detailed below. C: 1.13 - 1.618 D: 1.618 - 2.24 Final X to D: 0.886 - 1.13 Risk:Reward - The measurements for a valid 5-0 pattern are detailed below. B: 1.13 - 1.618 C: 1.618 - 2.24 D: 0.50
OANDA:XAUUSD
by cdschultheis15
1
Silver Xau/Usd ShortHere on the Silver/USD pair we have a bearish cypher pattern! Along with the PRZ of the harmonic, we have an area of support/resistance and a weekly trend line- as shown below. Price has been making consecutive lower lows. With the high D point compared to the B coordinate, I expect price to go into some consolidation before either continuing or reversing at this level. Risk for a cypher pattern is 1:2 as standard. Cypher ratios X:B = 0.382-0.618 A:C = 1.272-1.414 X:D = 78.6%
OANDA:XAGUSDShort
by KyleMcQuade
3
NZD/CAD LongFollowing my resent analysis on the Euro against the Cad, here is a bullish bat for the New Zealand Dollar. The NZD, like the euro, has seen some strength in past weeks- however it has began to pull back slightly. This loss of momentum has aided the rapid decline in its value against the Canadian dollar, along with the BoC interest rate rise. This decline has reached a key level for this pair, which will be illustrated below. Weekly support has been approached- an area where we have previously a seen solid reversal area for two shoulders! It is not unlikely that this pair will reverse in the same area. Obviously, reversals come when there is an imbalance in supply vs demand/price vs actual value. As per the key support level, the harmonic pattern, and the sharp rise in the cad's value, I believe it is time for the NZD to rise and even out the current imbalance that has occurred due to the interest rate hike. As always, risk will be 1:3 with the bat pattern. Bat Ratios X:B = 0.38-0.5 A:C = 0.382-0.886 B:D = 1.618-2.618 X:D = 88.6%
Long
by KyleMcQuade
EUR/CAD longHere we have a bullish shark on the Euro/Canadian Dollar. The interest rate hike came as a surprise but we should not be shocked by the strength of the Canadian dollar. Against the USD on the daily and weekly charts there is a clear Elliot Wave, showing clear optimism for the currency. (See idea below, logged 8 months in advance). The Cad has gained value across the board against all currencies. The Euro in the past couple of months has also seen sound growth. When comparing this to the value of the Canadian Dollar we may see this pair heading into some consolidation before either currency gains more momentum. Due to the nature of the shark pattern, there is no key singular entry price for any trade. Instead we have a reversal ZONE. Our C:D wave must be between 1.618-2.24 the distance of B:C, while the complete retracement between X:D must land between 88.6% and 113%. Taking this into account, I have identified the minimum and maximum entry levels for a long position- see bold horizontal lines. An entry can be taken at any point on/between these levels. As per the distance between the entry and TP levels, the lower price will give us a far greater return- I will wait for price to reach this level before looking into taking a position. As the shark pattern has the same ratios as a 5-0, we adjust our TP level to accommodate for a potential reversal. See ratios below: Shark ratios A:C = 1.13-1.618 B:D = 1.618-2.24 X:D = 0.886-1.13 K.M.
Long
by KyleMcQuade
GBPUSD LongAbove we have a possible long position on the Pound-Dollar, through a bullish Cypher set up. The X point is taken from the decisive push of an impulse wave that broke a symmetrical triangle. The X and D point now both sit along a pivot line- an area where we previous had an inverted head and shoulders! Please see the chart below for generic analysis. As always for this pattern the risk is 1:2. Due to the depth of the stop loss, I will be patient for an entry as price may dip below PRZ the D level. Cypher ratios: X:A = 38.2%-61.8% A:B = 127.2%-141.4% X:D = 78.6%
Long
by KyleMcQuade
2
GBPJPY LongThis week on the pound-yen we have a bullish bat . The USDJPY and GBPJPY have entered into a consolidating phase, both sitting at a level of support, with the GBPJPY itself is currently sitting at what can be argued as a pivot level to a previous 5-O formation. This is a key area worth watching! Stepping away from the chart, we have the GBP GDP and JPY CPI releases on Thursday 24/08. Price will begin to move once a consensus/forecast has been agreed. This will be the deciding factor in making/breaking the trade. I will look to enter this pattern as early as Sunday night/Monday morning (UK time), unless forecasts are against the direction of this trade, for then I will be skeptical. Nonetheless, this is a good opportunity to load up in long positions. Take profit level at 1:3. Bat ratios X:B - 38.2%-50% A:C - 38.2%-88.6% B:D - 1.618-2.618 X:D - 88.6%
Long
by KyleMcQuade
2
BTC/USD - HISTORY REPEATS ITSELF - THE BIG PICTUREHello, traders! Today, we are looking at Bitcoin. Everyones has one similar question on the brain: WHEN WILL BITCOIN CRASH!? After analyzing the big correction for bitcoin in 2014, while keeping the parabolic curve in mind, price has made a huge correction at 4.618 when using the Fibonacci Retracement tool. This first measurement starts at tip of the wick in the peak of the parabolic curve and ends at the bottom wick at the lowest point of the correction. The corrections in the past have retraced to the 0.886, measured from the bottom of the parabolic curve to the tip of the new parabolic curve (further predicted from the 4.618 measurement). If history is the repeat itself, by the end of the year Bitcoin will be due for the MAJOR correction peaking at the price level of $4700 USD.
BITSTAMP:BTCUSD
by cdschultheis15
EURAUD ShortAfter closing me previous EURAUD short, I have taken another position, but yet to post analysis (it may not be too late to enter!) This pair is showing us a 3-drive pattern, where most would look to go long after the 3rd drive completion. However, as stated in the previous AUDUSD and Silver trades, we here at Six Figure Capital look to trade the third drive. Taking this into consideration, I looked for a second touch on the trend line with a retracement level of 0.618-0.786. Within this reteacement wave we have a bearish bat . Albeit taken form the lower high of the impulse eave, however the 88.6% retracement where we look to enter also aligns perfectly with the channel! Bat Ratios B: 0.382-0.5 C: 0.382-0.886 D: 0.618.2.618 xD: 0.886 3-Drive ratios Retracements: 0.618-0.786 Extensions: 1.272-1.618
Short
by KyleMcQuade
Silver/USD ShortHere on the 4 hour chart we have what some would see as a bullish 3-drive pattern. However, in recent times, I have had more success trading the third wave (as suggested by my friend @LewisGlasgow ). In this pattern the first retracement hit the 0.618 level, thus I will look for the second to do the same at the top of the channel. Should price hit the zone, I will look for a short candlestick formation. That said, should the minor support area highlighted above be broken, I will likely take a short position. This entry would mostly based on the urgency with which the level is broken- a dominant engulfing candle, long day candle etc. Either way, I will hold my position until price is on par with support of the first drive- then leave half of the position until price hits the bottom of the channel. When this adjustment is made, I will also bring my stop-loss level to align with my entry price to bulletproof the trade. At Six Figure Capital, we're all about risk management! Risk is currently sitting at 1:3- should I decide to enter early, I am convinced that the lower entry will not require the same stop loss. The adjustment should allow for the risk/reward level to remain relatively unchanged. See my AUDUSD short below where I took this exact same position and price turned TO THE PIP! Three Drives ratios: Retraements: 61.8%-78.6% Extensions: 127.2%-161.8%
OANDA:XAGUSDShort
by KyleMcQuade
CADJPY AnalysisThis pair has produced solid head and shoulders pattern right below a key resistance level. Price is overbought due to the urgency of the rise since the last touch of the trend line and may reverse due to an imbalance of price:value. That noted, this is due to the increase of the BoC interest rate from 0.5 to 0.75. As capital flows to Canada we will see increased pressure on the resistance zone. Due to the solidarity of this level, if price breaks 91.00, we could see a rally north to around the 94.00 level. With the recent, interest rate hike I will not be taking a short position at the resistance level; I will be keeping a close eye on this pair for movement after the break/bounce.
by KyleMcQuade
GBPUSD shortThe market as been really quiet over the past month or so- here is a small trade I may consider in the morning. We have a short bat on the pound-dollar. Price is reaching a level of resistance where price has recently bounced (see below). The Support/Resistance zone drawn using the black horizontal lines is the area in which I would be looking to enter into a position. As of 09:30 London time I will await the release of the UK Net Consumer Credit and Mortgage approvals. Both consensus are expected to be lower than last month. My entry will depends on the release compared to consensus. An increase in GBP money supply would also slightly decrease the pounds overall value. USD GDP is expected today with no expected change forecasted from the previous release. Both initial AND continued jobless claims are expected to drop also, which would bode well for the dollar. Due to the nature of this trade, the Shark, I am not able to predict the ideal entry (this can come anywhere between 88.6% retracement and 113% extension of the AX wave. My TP, however, will always be the 50% retracement level of the CD wave. Stop loss will be above the resistance level (around 1.305) but must always equate to at least 2:1 risk, ideally 3:1. Keep an eye on this on! Shark Ratios C: 1.13-1.618 D: 1.618-2.24 xD: 0.886-1.13
Short
by KyleMcQuade
AUD/JPY - Bearish BatHello, traders! Here in Scotland with @LewisGlasgow and @ KyleMcquade! We are having a great time building bonds, growing and learning with the Six Figure Capital team! Today, we have spotted a bearish bat on the 4H chart with AUD/JPY. Once price hits D point (87.140), we can look to enter out position and sell it down to 83.750. The take profit level shows confluence in respect to the support line I have shown just below the pattern. Risk/Reward Ratio - 1:3 The measurements for a valid bat pattern are detailed below. B: 0.382 - 0.50 C: 0.382 - 0.886 D: 1.618 - 2.618 Final X to D: 0.886
Short
by cdschultheis15