Unveiling the GemsSideway patterns, often labeled as losers or deemed non-tradable periods by some, invite differing opinions and perceptions. It ultimately rests upon the individual trader to discern their potential. As for me, I perceive them as a treasure trove of trading opportunities waiting to be explored. Why, you may ask? It's quite simple - all I need to do is sell at the high, known as resistance, or buy at the low, known as support.
However, before plunging into these trades, I exercise caution and adhere to a meticulous approach. My aim is to ensure that my final target yields a profit factor of at least 2, and that a minimum profit potential of 50 pips awaits me before I engage in any trade.
On the right, a fascinating Bearish Bat Pattern is currently unfolding, tantalizingly close to completion at 0.6361. Meanwhile, on the left, the support and resistance trade strategy beckons with its own allure.
Now, the question arises: Which of these enticing trading setups resonates with you? Join me as we explore the path less traveled and unlock the potential hidden within these captivating patterns.
Resistancelevel
The Oldest Pair I've TradedDo you still remember those unforgettable moments when I first embarked on my trading journey with GBPJPY? It holds a special place in my heart as the very first pair I traded, and I stuck with it through the ups and downs until the spread for GBPJPY skyrocketed to 14 pips for an extended period. Oh, the memories!
Presently, GBPJPY finds itself in a captivating sideways movement, offering ample opportunities for those employing the support and resistance trading strategy. It's a perfect scenario for executing the age-old principle of buying low and selling high, or even exploring the realm of harmonic patterns.
Personally, I'm eagerly awaiting the completion of a bearish shark pattern at 173.23, signaling a potential shorting opportunity that aligns with my analysis.
Alternatively, you can choose to navigate the daily chart's defined zone, indicated by the red resistance line at 172.05 and the blue support line at 167.48. Within this trading range lies an enticing profit potential of 457 pips just waiting to be tapped into.
Join me as we delve into the timeless allure of GBPJPY and unleash the vast possibilities it holds for traders like us.
Did you missed this trade?
Last Week, I mentioned my plan to await a suitable shorting opportunity on the EURUSD, owing to the retest of resistance with RSI divergence. As anticipated, this move resulted in a total profit of 205 pips (equivalent to 2,050 USD/lot) based on the difference between the opening and closing prices.
My strategy for this week remains unchanged, and I am still on the lookout for a new shorting opportunity. At present, I am waiting to initiate a short position at 1.0901 on the 1-hourly chart (left), which represents a key resistance level. Join me as I continue to monitor the market and strive for profitable trades.
Closer look at the current S&P500 situationThis analysis shows what I am currently looking for in the market, regarding the S&P500 possible outcomes.
Since my last post the bulls made a good job and prices reached the previous tops level, at a very strong resistance near 4200.
But at such levels a small range is common and expected. I highlighted the zone between the orange lines, that was defined by the last top and the last bottom. I am carefully observing the movements around this small area, and I consider that the outcomes from it may lead to decisive movements. I am considering the breakout of the 4200 to be a long trade trigger, whilst the breakdown would be a short trade trigger. But while none of these cases happen I remain neutral until I can see some outcome out of this relevant resistance level.
The overcoming of the 4200 zone would be the final missing confirmation of a trend reversal (from bear to bull).
On the other hand, this resistance can do its job once again and hold the prices below it, keeping us in the congestion or in the bearish scenario for the next few months.
It is good to note that we're close to the "sell in May" seasonality.
This could be a Big OneAs an experienced trader, I've identified a significant trading opportunity that I'm eager to execute. My strategy involves a buy and hold approach, with a focus on minimizing risk and maximizing rewards. Rather than setting multiple targets, I prefer to extend my targets and remain flexible based on the market conditions and candlestick patterns that emerge.
This comprehensive trading plan enables me to minimize the time I spend monitoring the markets, allowing me to focus on other important aspects of my work. With a keen eye for detail and a commitment to achieving my goals, I'm excited to see what the future holds for this trade.
Double Your Chances: How to Profit from Both Buying and Selling Double Your Chances: How to Profit from Both Buying and Selling Opportunities on the AUDUSD
For traders seeking a buying opportunity on the AUDUSD, keep a close eye on the 0.6686 level for a potential entry point. While waiting for a retest after a market break and close above 0.6709 may provide added comfort, don't hesitate to take advantage of the opportunity at hand.
Alternatively, those looking to short the AUDUSD should keep an eye on the 0.6703 level for a potential entry. However, be warned that a market close above 0.6709 could signal a shift in the market and may not be the best opportunity for shorting.
By considering both potential outcomes, traders can position themselves for success and maximize their chances of profit on the AUDUSD.
Reap the Rewards for Massive GainsCounter-trend trading can be a lucrative strategy if executed correctly, making it a favorite amongst traders. When done right, it can provide the best profit factor, making it a viable option for those seeking to maximize returns.
As for the EURUSD, the weekly chart displays a retest on resistance with an RSI Divergence, signalling a potential shorting opportunity. However, it is important to note that this setup is not foolproof, and it is necessary to exercise caution. In fact, a candlestick confirmation is yet to be observed on the weekly chart.
For the daring traders out there, keep a close eye on the 1-hourly chart (on the left) for a 3-bar reversal, which may serve as a green light for a prime shorting opportunity. Take a calculated risk and pounce on this opportunity before it's too late!
Aggressive Trader could considerIf you are an Aggressive Trader, you may consider shorting the AUDCAD on the 1-hour chart at a market price of 0.9044.
Conservative trader might want to wait for a 3-bar reversal or a retest at 0.9055 on the 4-hourly chart based of the retest of previous resistance and of a sideway bounce trading setup.
459pips or 89pips of profit, which will you choose? If you have to choose only one trading setup, it is understable you would be choose the 459pips setup. But as a thinking trader, we have to be aware of what kind of trading setup provides such trading opportunity. The 459pips is from a counter-trend trading opportunity on the daily chart(right). I'm looking to short at 1.2395 and exit at 1.1937, for that to happen a restest at 1.2395 is required.
On the flip side, Trend Traders could wait for a buying opportunity off the Bullish Bat Pattern on the 1-hourly chart(left), the entry price is at 1.2308, candlestick Pattern confirmation is required.
Which side would you choose? The Bear 🐻 or The Bull 🐮?
JPN225 Index: Long Entry Opportunity after Touching ResistanceGreetings, fellow traders! Today, we'll take a closer look at the JPN225 index . On the four-hour timeframe, we can see that the index has recently touched its resistance level and is now retracing. This presents a potential opportunity to enter a long position in anticipation of a bullish move. My analysis suggests that the index is likely to continue its upward trend soon, providing a profitable trading opportunity.
As always, we remind our readers that this view is for educational purposes only and should not be taken as trading or investing advice. We recommend consulting with a financial advisor before making any investment decisions. Remember, in trading, price is the king of the market.
Thank you, and happy trading!
Regards,
Alpha Trading Station
DOW Jones to push upwards to resistance zone at 33690Price trends upwards to test the resistance zone at 33690. About 190 points can be made with this move.
Short Selling Opportunity Ahead: AUDCAD Analysis | 4h chartHello traders,
As you can see in my previous post the resistance level reached and profit target hit.
Now again short selling opportunity on the horizon. Wait for the OANDA:AUDCAD to close below stable support (0.91200-0.91500) and test resistance before opening short position.
Avoid long position due to downward trend and high supply.
Thanks & regards,
Alpha Trading Station
Disclaimer: This view is for educational purpose only & any stock mentioned here should not be taken as a trading/investing advice. We may or may not have position in the stocks mentioned here. Please consult your financial advisor before investing. Because Price is the "King of Market".
USDJPY - FREE MONEY!!This is the kind of trading setup that I used to shout! FREE MONEY!! It's a sideways bounce formation; as the name implies, I expect the market to bounce between the two zones, the red and blue zones. The profits are pretty good, given that it is a 15mins chart, it produces a potential of 56pips(approx 560usd/lot).
With that, risk management is essential. Don't jump into the trade without measuring your initial risk, and it is important to wait for the candlestick patterns confirmation so you can potentially avoid the one that is going to violate (BREAK) the trading setup.
GBPJPY - AB=CDAn AB=CD pattern setup could be used in this manner too. I'm waiting for a shorting opportunity at 167.03.
Aggressive traders could consider an instant shorting opportunity the moment when the market opens, whereas conservative traders could wait for a double top with rsi divergence to engage the trade.
NVDA: Early Bears Punished by Devious WhipsawPrimary Chart: Two Downward Trendlines, Fibonacci Levels, Major Resistance Zone and Anchored VWAP from October 13 Low
Early bears jumping in to short NVDA last week were punished when NVDA's apparent breakdown failed. NVDA broke decisively below key Fibonacci support as well as an upward TL off the YTD lows from mid-October 2022. But then this breakdown utterly failed with price moving right back up above the TL and into the parallel channel off the YTD lows. Price also reclaimed that key Fibonacci level at $134.85 (the .382 retracement shown as a purple line).
Now price remains squarely within the parallel channel, but on Friday last week, it rallied smack into resistance at the August 4, 2022, VWAP (orange). This VWAP lies at $141.78. Price may pull back from this level a bit even if later it wants to push a bit higher before starting the next leg downward.
SquishTrade monitors the $145.87 to $150.67 range as a key resistance level where NVDA's bear rally could ultimately fail. No one can predict the future, so it's important to stay open minded to probabilities rather than remaining married to a viewpoint such as a rigid bearish or bullish argument. Markets love to destroy well-supported but overly rigid viewpoints.
In short, the probability of the downtrend resuming continues to increase as NVDA rises higher. The downtrend line and pink resistance zone ($145-$151) marks a key spot where the probabilities for a downward move seem better as long as risk is managed with with a tight stop above this key level. SquishTrade recommends continuing to watch DXY and interest rates as this market remains challenging and tricky.
A more conservative approach may be to wait for confirmation rather than getting bearish right at major resistance. The reason for this approach is that one never knows when a bear rally will end, and markets love to whipsaw before starting their real trend move, and this is true especially this year.
Some may see a break above the down TL from March 29, 2022 (light blue TL). The linear chart below shows this TL as having been violated to the upside. But keep in mind that the Primary Chart which is logarithmic shows that this TL has not been touched yet since August 2022. The chart below shows the linear chart's version of the TL break. But on both linear and log charts, the longer-term down TL (gold) has not been broken, and that lies significantly overhead.
Supplementary Chart: Linear Chart Showing TL Break
SquishTrade has been watching NVDA for a short setup, and will continue to monitor how price responds to some key resistance levels. SquishTrade prefers not to consider shorts before earnings. Sure, this may result in missing the move as with AMZN, GOOGL, META, MSFT in recent weeks. But it also may mean missing the complete annihilation of a position as with bears on AAPL or bulls on GOOGL and AMZN around earnings reports in recent days.
And with CPI in the US being released this week (November 10, 2022)—and CPI reports have almost started becoming like FOMC days in terms of volatility in equity markets—and with midterm elections on Tuesday, markets could wipe out a fair number of poorly positioned bears and bulls alike this week. Caution is recommended. Wait for the best setups, the right setups for your trading strategy and approach. And remember, there will always be more setups, so don't let FOMO cloud judgment. Bears can get the same degree of FOMO as the most optimistic bulls.
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Author's Comment: Thank you for reviewing this post and considering its charts and analysis. The author welcomes comments, discussion and debate (respectfully presented) in the comment section. Shared charts are especially helpful to support any opposing or alternative view. This article is intended to present an unbiased, technical view of the security or tradable risk asset discussed.
Please note further that this technical-analysis viewpoint is short-term in nature. This is not a trade recommendation but a technical-analysis overview and commentary with levels to watch for the near term. This technical-analysis viewpoint could change at a moment's notice should price move beyond a level of invalidation. Further, proper risk-management techniques are vital to trading success. And countertrend or mean-reversion trading, e.g., trading a rally in a bear market, is lower probability and is tricky and challenging even for the most experienced traders.
DISCLAIMER: This post contains commentary published solely for educational and informational purposes. This post's content (and any content available through links in this post) and its views do not constitute financial advice or an investment or trading recommendation, and they do not account for readers' personal financial circumstances, or their investing or trading objectives, time frame, and risk tolerance. Readers should perform their own due diligence, and consult a qualified financial adviser or other investment / financial professional before entering any trade, investment or other transaction.
BTCUSDT - LAST CANDLESTICK CONFIRMATIONBTCUSDT , We still have 8hrs untill the Day candle close. If the candlestick close above 19500, we can expect some pump coming. but if the candle close below 19500. we now can entry a short position.
Whats your thoughts then?
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GBPAUD - Bearish Shark RetestOn the 4-hourly chart, we have a retest at the resistance level with an RSI Divergence.
The strategy that I plan to involve myself with in the trade is through the Bearish Shark Pattern setup that completes at 1.8065.
I've taken this trade with an aggressive approach. Trade engaged at 1.8040.