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Rejection

CADJPY short: continuation of a downtrend?There is so much going on on CADJPY. The main chart, showing the bigger picture, highlights a downtrend with the setup of the moving averages, but it is also clear that the price is going down recently. If we have a closer look, we can appreciate more details of recent price action and how the trade is structured: The entry point is placed on a small reaction by sellers to a good level of resistance. Obviously, I would have preferred better candles to play this rejection, but since we have other strong elements in favour of a short position, I'm ok with this kind of reaction and I don't want to compromise my risk to reward ratio to have a better confirmation. Regarding the stop loss, we have two main levels to consider. The first one is right above the short term resistance. As I mentioned above, at the moment it is clear that we have a downtrend, but reaction by sellers is not that strong. For this reason, I preferred a safer stop loss, placed above an important swing high (as shown in the chart above). The take profit is placed at 76.30, trying to catch a new lower low on the market, but I will also consider removing part of my position around 77.60, where we have a previous important swing low. There is also a chance that the price will follow an ascending triangle formation, so I will keep an eye on the uptrend line at the bottom. Good luck everyone!
Short
by FedericoSellitti
Gold Sell SetupGOLD is now sitting around the 1900.0 green round number so we are waiting for a break below the lower red trendline last swing to sell. Our red trendline is valid, but it would be better if the price forms a new blue dot (swing) around it so that our stop loss would be smaller. Until the sell is activated we would be overall bullish, and Gold can still test the upper blue trendline and blue supply zone before going down. In this case, we will be looking for a new sell setup to form around it. When the sell is activated, our stop loss would be above the last red dot (swing high). And we always target double our stop loss size. Good Luck!
OANDA:XAUUSDShort
by TheSignalyst
GBPUSD - Short trading idea GBPUSD recently went through a positive short-term period, with the price taking nearly 300 pips from its low at 1.2675. Despite that, the bigger picture shows a trend that is still down: From a technical point of view, we have a sustained downtrend line that seems to hold the pressure of buyers. Last touch of that downtrend line was followed by a huge bearish candle, pushing the price down by 70 pips in 20 minutes. Sellers are still on the market. There is a possible formation of a pennant, with a short-term uptrend line at the bottom (highlighted in red in the chart), so we will double-check market action if and when the price reaches that level. Putting this trade on a larger context, GBP might face a tough period, with the UK that is struggling to handle a very difficult situation related to the coronavirus. Yesterday, Prime Minister Boris Johnson stated that this the UK is at 'critical moment' with coronavirus. For the first time, daily cases in UK broke the barrier of 7,000, reaching a new critical level at 7,143. With more news coming today and the Nonfarm Payrolls for the USD coming tomorrow, we can expect good volatility, so be careful and manage your risk properly. You can follow this trade real time on my account in the Swing Trading course on Udemy . Good luck!
Short
by FedericoSellitti