AUDUSD SHORTList of confluences:
1: Double Top/ M Pattern at high.
2: Bearish engulfing candle stick pattern
3: Key Level Breakout
Risk reward for this trade is a around: 3.62:1
Priceactiontrading
Learn Trend Analysis | Impulse & Retracement Legs 📈
Hey traders,
As you asked me, in this educational post we will discuss some price action basics.
No matter whether you are a fundamental trader or a technical trader you should be able to execute trend analysis.
You should always know where the market is going; if it is bullish or bearish.
One of the simplest ways to execute trend analysis is to perceive a price chart as a sequence of impulses and retracements.
➖The impulse leg is a trend-following move.
It is characterized by heightened movement dynamics and speed.
Usually the completion point of the impulse:
sets a new lower low in a bearish trend,
sets a new higher high in a bullish trend.
➖A retracement leg is a correctional movement within the trend.
Its’ initial point is the completion point of the impulse or retracement leg and
its completion point might be an initial point of a new retracement leg or of a new impulse leg.
Usually, a retracement leg is characterized by a slow zig-zag movement.
Usually the completion point of the impulse leg:
sets a lower high in a bearish trend,
sets a higher low in a bullish trend.
Perceiving the price chart as the set of impulses, one can easily and objectively identify a global, mid-term and short-term market trend, price action trend-following, reversal and correctional patterns.
What do you want to learn in the next educational articles?
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EURGBP Potential Bearish Reversal, SHORT!The pair has been in an uptrend for a while but as we can see we have recently broke structure to the downside showing that bears are stepping in. In this week i will be looking for a short-term selling opportunity around 0.83838
EURAUD GOING DOWN ?Already seen the price action just wait for bearish engulfing before entering this trade :)
EURAUD GOING DOWN ? Already seen the price action just wait for bearish engulfing on the zone before entering this trade :)
EUR/USD could dive to 1.0350, the 2017 low“We see the EUR weakening to the 1.06 level in the coming weeks, while a ramp-up in Russian aggression and signs of depressed growth in the bloc (possibly a recession ahead) could see the EUR aim for the ~1.0350 low of early-2017.”
Ideas for EUR USDLooking to short, but will need to wait for a 4H close below the level to ensure that we can continue with the selling.
Trading Price Action in Volatile TimesHey Guys!
The world markets are on a wild ride at the moment. With urgent news being released by the day. Traders around the world are trying to guess the next fundamental news to be released and further guess how the markets will react.
The world markets become a huge guessing game arena.... Now, that's fine if that's your cup of tea. The adrenaline rush or even the pure intellectual rush one gets from contemplation(speculation) is exceedingly addictive.
For me however, what happens in the world really is not of consequence to how I trade. Price action trading reads price and simply acts on its messages on a day to day basis. Whether the markets are in the wild west, or if it's peaceful like a calm lake. It's all the same.
Some say that the world of business is all about people. If you understand people, you'll do fine. In trading, its all about price. If you understand how to read price , you'll do fine.
Trading Price Action takes away the stress that comes from a turbulent and constantly changing world by exponentially diminishing the "guessing" aspect of trading. To me, that's a huge merit in terms of my quality of life.
Just a thought! Have a great day guys!
Ken
EURUSD: Classic Trend-Following Trading Setup 🇪🇺🇺🇸
Hey traders,
As you know I am very bearish biased on EURUSD.
I was patiently waiting for a retest of a recently broken key structure.
Yesterday the price finally approached that.
On hourly time frame, the pair formed a double top formation and then broke its neckline.
Now I have my sell limit order on a retest.
Bearish trend continuation is expected.
Local goals:
1.0945
1.086
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How to Find Legitimate Head and Shoulder PatternsHey Guys!
I just wanted to post a quick tutorial on how to find legitimate Head and Shoulder patterns.
In this lesson, I explain the 5 rules that a Head and Shoulders pattern must abide for it to be legitimate.
Here's the rules:
#1 Both necklines must be parallel.
#2 The main neckline cannot be broken out of surpassed before the right shoulder's price level is reached.
#3 The Head and Shoulders must be relatively flat.
#4 The top neckline can only be adjusted to a wick between the main pivot and the last correlating major pivot.
#5 The prior trend must be in the opposing direction. (which is up in the case of a "short" Head and Shoulders Pattern )
That's it! I hope this helps!
Have a great day!
Ken
NZDUSD: Time to Grow? 🇳🇿🇺🇸
Hey traders,
NZDUSD is taking off from strong structure support.
The price formed an inverted h&s pattern on a 4h time frame
and just broke and closed above its horizontal neckline.
I expect a bullish continuation to
0.6918
0.697
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EURJPY: Reversal Pattern to Watch🇪🇺🇯🇵
Hey traders,
EURJPY dropped to key weekly structure support.
On that, the price formed an inverted head and shoulders pattern on hourly time frame.
To buy the market with a confirmation you need a bull breakout of its neckline.
125.55 - 125.95 is the zone that must be broken.
Then buy aggressively or on a retest with the goal 126.9
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NZDUSD: Classic Range Trading 🇳🇿🇺🇸
NZDUSD is stuck within a horizontal trading range.
Approaching its support the price formed a tiny double bottom formation and broke its neckline.
I expect a bullish move to 0.684
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Mandatory Price PatternsHey Guys!
When it comes to price patterns, there are many. I mean, look up "price patterns for trading" on google and you'll find countless variations. Just like in the movie "A Beautiful Mind", where Russel Crowe's character locates patterns in Russian Codes; a price action trader, can find endless variations of patterns on their charts.
However, these variations actually deter the trader from their sole purpose of trading. Which is to make money. Period.
With so many patterns multiplied by the different time frames that a trader utilizes in their trading, it is bound that there will always be multiple price patterns on the chart at any given time. What does that do? It confuses the heck out of the trader.
That said, price patterns are a foundational element of price action trading, and is necessary to trade at higher levels. But it is not the amount of patterns that a price action trader must master. If the price action trader can master the Double Top/Bottom, and the Head and Shoulders patterns at the initial level. Out of my experience, these 2 patterns alone are more than enough to extract consistent profits from the markets.
Simply put, it's about quality over quantity.
That's it! Hope this provided some insight into price patterns!
Have a great day!
Ken
GBPJPY ShortThe Pound has been showing some serious weakness for weeks now coupled with the ongoing crisis, investors tend to put their money in safer places like the Yen. So, I will still be expecting bearish prices on GJ but I will wait for a pullback for safer entries. That being said, the market can go wherever it pleases but let's watch and see what happens.
AUDUSD: Potential Pullback Trade Explained 🇦🇺🇺🇸
AUDUSD is approaching a strong structure resistance.
On that the price formed a double top formation.
To catch a pullback you should wait for a bearish breakout of its neckline.
You need an hourly candle close below 0.723 - 0.725 area.
Then shorting on a retest your goals will be 0.7185 / 0.7145
If the price sets a new high, the setup will be invalid.
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AUDJPY LONG SETUPEntry if the price didnt touch the quasimodo first
wait for pullback to the strong demand
RR 1:2.5
keep your risk management strict
priceaction
Gold May not stop before $1975.Gold is on fire and aiming to test its near-term swing high zone of $1970/1975.
Gold's near-term support 1930/1932. As long as above $1930, it is possible to test the $1970/1975 price zone. Fundamental, technical, and market sentiment still suggests more upside bias.
But we may see some correction at the $1970/1975 price zone.
On the other hand, if xau/usd breaks below the $1930, it may test its another trendline support level of $1900/1910 price zone.
I remain bullish on gold-based of all three types of analysis. But of course, remember profit-taking factors and overbought conditions of gold.
US30 Analysis (Daily Timeframe)Last week US30 tanked with the news regarding the Russia vs Ukraine situation. At the end of the week the market rejected 32250 and had a strong bullish retracement.
Even though this was a strong rejection I am not in favors of the bulls just yet, because price is currently closing below the 200EMA which is a key indicator in identifying the trend.
If price rejects the 200EMA and forms resistance after printing a bearish candle, I will be looking for sell opportunities to possibly retest the low that was created last week.
But, if price pullback to form support and creates a higher low from the rejection wick, then this will confirm more bullish momentum. Waiting to see how price reacts throughout the week with a true trend direction identified by the end of the week. Keep in mind that there are a few important news reports regarding the economy this week which will bring volatility to the markets.
1.Price is in a bullish trend.
2. Market structure was broken here, but price has closed back into this range.
3. Price has closed below the 200 EMA (which is great indicator for identifying the trend) if price rejects, this is a great indicator for a bearish continuation.
4. Price did have a strong wick rejection from 32250, but I think price may retest this low since price is now closing below the 200EMA. If we form resistance and reject the 200EMA, price can definitely continue bearish to retest the lows
Characteristics of Price Action TradingHey Guys!
I know price action trading can be somewhat a mysterious and confusing style of trading. So I just wanted to jot down the basic characteristics of price action trading to help clarify this ambiguous trading style.
#1 Price action trading only uses price action to make trading decisions. No indicators, fundamental analysis, intermarket analysis, etc... Just price alone will do.
#2 The Price action trader "Reads" naked price ( using candles, trendlines, price patterns, distinct ways that price itself fluctuates) to predict how much future long/short strength there is in a asset and makes trading decisions.
#3 To the price action trader, misanalysis is never the fault of price, fundamentals, or any other analysis method. The fault is always on the price action trader's misinterpretation of price.
#4 Price action trading techniques can be directly applied to any time frame, thus can be used for any style of trading. Long term/Swing/Day Trading. Moreover can be applied to any asset class.(though some techniques must be tweaked somewhat.)
#5 The price action trader does not require a logical understanding of "why" price moves in a given direction. They have the mentality that if it works, there is no reason or need to explain it.
#6 To the price action trader, current price is more valuable than past price in terms of analysis. So what happens closer to current price has more weight in the analysis process. Thus must watch current price and cannot just buy /sell and let a higher power take the wheel.
That's it! Hope this clarifies price action trading a little!
Have a great day guys!
Ken
ICT Market Maker Sell ModelFirst you must have a clean consolidation which you are anticipating that it will be taken once market come up.
Secondly you must have an old low Significant OB which market is chasing it(magnetic) and you know that after market taken out that old low then it will reverse quickly to come up to attack your consolidation.
And finally you will investigate if you have any bearish SMT divergence that will give you a confidence that market will chase that old low
GBPJPY ShortStill expecting price to drop considering the impulse we saw pushing price to 154 area. Although I expect some sort of pullback before we see another impulse downwards
