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Macdivergence

The Reason Why it’s Safer to Trade against CompressionToo Risky to Sell EUR/CAD with this Supply Above? At any time frame, the EUR/CAD seems to be in bearish momentum. In the H1 chart, the price is in a downtrend of almost 300 pips. While yesterday a fresh supply was created by the price above. Most of this downtrend was a compression which meant that the price compressed down while picking up all the sell orders along the way. Compression indicates a powerless movement in the price. In other words, it seems the last downtrend of the price was powerless and it’s safer to look for a reversal signal and trade against the compression. Usually, a supply level is a great level for a sell position, but this supply is created after the price had already decreased about 250 pips and divergence has occurred between the MACD indicator and the price. So, instead, I will use this supply as a confirmation zone and not as a level of sell position to sell this supply as is too risky now. If the price will break out the supply, it will be a signal for reversal opportunity and we should look for a price action setup for a buy position. Breaking out the supply above will change the momentum in the H1 chart from bearish to bullish.
Long
by the5erstrading
1
Oil Continues Down Although Large Crude Oil Inventory FoundA significant Divergence Between MACD and Price Highs. Yesterday, the OPEC succeeded to extend their agreement to cut production until 2020. Also, The American Petroleum Institute (API) declared that they had found another large inventory of crude oil. Despite this good news USOIL price continues down. In the H1 chart, there is a final drop from yesterday, which has now changed the bullish momentum to bearish. The change happened after a significant divergence between the MACD indicator and the price highs, while the price created a higher high the MACD created lower high. This change indicates that the downtrend has probably just begun and that we should look for an opportunity to sell USOIL. It seems the price tends to reach 52.00 zones. For now, the correct level to sell USOIL is at the supply above and then the target should be at 52.00 zones which is the demand below. This demand is also a great level to buy USOIL as a long term position. If the price breakout the demand and continues down, it indicates that the long term momentum has also changed to bearish.
FX:USOILShort
by the5erstrading
3
Three Reasons to Believe GBP/USD Remains BearishGBP/USD Price is Established Below The Annual Open Price A few weeks ago, the GBP/USD price fell below the annual opening price, which became a significant resistance zone. Since the after three unsuccessful attempts to breakout this resistance. The price reattempted to break the resistance against two days ago (25th June 2019). This time the daily candle ended as a bearish outside bar candlestick pattern, by engulfing the candle of the day before. This candlestick pattern is the first signal to look for a sell position. In the 1H chart, there are two more signals to look for a sell position on GBP/USD. The substantial divergence between the price and the MACD indicator – while the price creates higher highs on its way to reaching the resistance, the MACD creates lower highs. When the price hit the resistance, then dropped down and created the outside bar pattern, it also creates a fresh supply, which is the right level to open a sell position if the price retraces there. The three reasons that we think the GBP/USD remains bearish is because of the confluence of – bearish outside bar pattern, fresh supply, and the MACD divergence which create a reliable and strong setup for the sell position. In the 1W and 1D charts, it seems that the price will remain bearish until it reaches the 1.2150 zone, which is a support zone. Therefore, this support zone will be the target of this sell position. This analysis is relevant for swing forex traders.
Short
by the5erstrading
TRV monthly chart has a huge MACD divergenceThe MACD divergence on the long term chart of TRV indicates prices should be near the $128 level. The topping pattern forming on the daily seems to add credibility that this move is over. The daily chart closed near the low today and the MACD on daily is diverging down. Those who follow other time frames will note the weekly while in a large double top too of course, has no MACD divergence. No point in fighting the tide on TRV though. Will look at some puts tomorrow not too far out of the money.
NYSE:TRVShort
by AIQ_Systems
Waiting For Reversal Signal At AUDJPY 19/05/19As we can see, the AUDJPY is in bearish momentum, the price went down almost 500 pips in that bearish momentum, also, we can see a clear divergence between MACD and the price, as we Know, that divergence indicates that the price losing power and the bearish momentum is about to end, now, besides the divergence, we waiting for the price to break out the resistance above and To create a new fresh demand, if that happened, it will be a great setup for buy position, the final target will be the supply at the top, which is also a great supply for sell position, that analysis Relevant for swing forex traders,
Long
by the5erstrading
How SPX500 Index Will Open This Trading Week 05/05/2019SPX500 Index like most of the other indices creates a new record recently, a new record means that the price is too high and as forex traders, we need to look for sell position, First, we need to find A good setup to sell the SPX500, as we can see on the chart attached, there are 2 reasons that indicate it’s a good time to sell, 1- Divergence: as we can see, there is a very clear divergence between the price and the MACD indicator, while the price creates a higher high, the MACD shows a lower high, that divergence Indicates that the recent uptrend was powerless at the end of it, 2 – Supply Level: exactly where the price now, it’s a great supply level for sell position, it’s a great level for sell as long as the price will open the week in the same area, the demand below will be The target and also a great level for buy position.
TVC:SPXShort
by the5erstrading
Will EURUSD Continue His Bearish Momentum 19/04/2019For the long terms (daily or weekly chart), we can see that EURUSD is bearish, yesterday, the price dropped from 1.1300 zones, and created a fresh new supply level, that supply, can Be the sign that the long terms bearish momentum is continuing and it’s a time to look for sell position, also, the divergence between MACD indicator and the price is back to be bearish, the supply above is a great level for sell position, the stop loss order will be just Above this supply, if the price will hit the stop loss, the supply at the top will be the second level for another new sell position, in both cases, the long term target will be 1.1000 zones.
Short
by the5erstrading
1