Resistances
Avanza Breakout: Analyzing the Uptrend and RetestLong-Term Trend Analysis
Since its IPO, Avanza has demonstrated a clear uptrend, consistently forming higher highs and higher lows, reflecting a strong bullish sentiment over the long term.
Recent Price Action (Weekly Timeframe)
On the weekly timeframe, a triangle pattern emerged, which has recently broken out. The price then retraced, suggesting a potential retest of the previous resistance level, which could now act as support.
Retest and Key Levels
The recent retracement appears to be a successful retest of the previous triangle pattern's resistance. This successful retest often signals a continuation of the upward trend.
Examining further, we can see that the previous triangle pattern has now become a critical area for retests, followed by strong upward reactions. This supports the idea that the recent move down was indeed a successful retest.
Fibonacci Retracement Analysis
Using the Fibonacci retracement tool, the stock's recent reversal aligns perfectly with the 0.618 level, reinforcing its significance as a key support level. This level is often considered a strong area of support in uptrends.
Outlook and Potential Patterns
After analyzing the chart for patterns and key levels, we can anticipate potential future movements. A key level has been identified, which the stock has respected multiple times. This level could play a crucial role in forming a reversal pattern.
Two scenarios could unfold:
Inverse Head and Shoulders Pattern: The stock could form an inverse head and shoulders pattern, using the key support level as its neckline.
Double Bottom Formation: Alternatively, a double bottom pattern could emerge at the key support level, signaling a strong reversal.
Trading Strategy
To capitalize on this setup:
Conservative Approach: Wait for a clear reversal pattern (like the inverse head and shoulders or double bottom) to form before entering a position. This approach minimizes risk by confirming the trend direction, set a stop loss top minimaze risk.
Aggressive Approach: If you believe the stock doesn't require a full reversal pattern, consider entering now. In this case, setting a stop loss just below the key support level is crucial to minimize potential losses.
Wait for Breakout.....NSE:CANFINHOME trade at 880. Support is at 800. Resistance at 930.
You can watch it after breakout as a next resistance at 1100-1150
$AUDUSD | Sell Trade | Market Exec |Technical Confluences:
Price is at Overbought conditions Daily timeframe
Price action is close to a resistance trendline and entering an Interest Zone
Fundamental Confluences:
Very similar to the OANDA:NZDUSD posting I did, all other Central Banks in the DM space wanting to cut rates, it negates off the yield premium that NZD would be getting against USD
Market is consolidating after all the USD sell-off and profit-taking mood before NFP is likely to happen
AUD being a commodity currency is greatly affected by China's economic performance and it is currently still looking bleak
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I have also taken a Short position in the FX:AUDUSD trade and monitoring that the Resistance trendline and Interest Zone don't break.
Within the Orange Zones, I will look to add position if I see further support that the Resistance will hold
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Gold rebounds to resistance zone and continues to sellGold market fundamentals:
Yesterday's CPI data adjusted the market's expectations for the Fed's September rate cut, from 50 basis points to 25 basis points (bad for gold)
The ceasefire negotiations between Israel and Hamas will be held in Doha, which will have an important impact on the situation in the Middle East (bad for gold)
Although the Ukrainian army's advance to the Kursk region of Russia was counterattacked by the Russian army, the complexity of this situation has increased market concerns about security (good for gold)
Gold market technical aspects:
Referring to the Fibonacci retracement of yesterday's decline, 0.5 is 2459, 0.618 is 2464, today we can sell around two retracement levels
Trading strategy: The multiple US data just released are bad for gold. Combined with the above factors, we mainly short today, in the retracement range of 2459-2459
Support range: 2440, 2430
Resistance range: 2476-historical high
Aplapollo bearishtried to break resistance multiple times and failed. think we go lower to the support, fill those wicks and then make the next move. lets see where we get to.
XAUUSD: Risk aversion heats up, continues to be bullishGold Market Fundamentals:
Yesterday, gold prices surged by over $40 due to escalating tensions in the Middle East, driving safe-haven inflows. Israel’s military actions in Gaza, potential Iranian retaliation, and Ukrainian attacks on Russia’s Kursk region have all heightened investor demand for gold. Additionally, the market's heightened sensitivity to geopolitical risks has increased gold’s appeal as a safe-haven asset. The market now sees a 49% chance of a 50 basis point rate cut by the Fed in September. Falling U.S. Treasury yields are also supporting gold prices.
Gold Market Technicals:
Technically, the uptrend remains strong. After yesterday's rapid price increase, gold is facing resistance at previous highs. According to Fibonacci retracement, the 0.786 level is at 2456, which has shown some support but not strongly. The next strong support area is significantly lower than the current price.
Trading Strategy:
I have bought at 2461, targeting 2480 and 2500
Support Range: 2456, 2435
Resistance Range: Around 2480
Intraday Risk Data: U.S. July PPI
If you have different opinions or questions, please speak up and let’s discuss GOLD’s latest ideas together.
XAUUSD: Strategies for dealing with the long-short tug-of-warGold market fundamentals: OANDA:XAUUSD
The weak employment report prompted the market to expect a rate cut of nearly 105 basis points by the end of the year, with a 100% chance of a rate cut in September. This expectation has given gold some support, as rate cuts usually reduce the opportunity cost of holding gold.
However, with the rise of the US dollar index and the rebound of the 10-year Treasury yield, gold's rebound has also been suppressed.
The above two points are the current shock factors that have led gold to enter the competition between long and short forces.
Gold market technical aspects:
From the Fibonacci retracement indicator of Monday's plunge, the current price has come to a dense pressure zone, 0.5 is 2411, 0.618 is 2422, and the high point of the oscillation range 2415 is also between the two, so it is not easy to break through here. If it breaks, there is a broad sky above, and if it does not break, it is likely to continue to maintain the oscillation pattern.
Trading strategy:
Although it is a tug-of-war between long and short positions, I prefer a decline that cannot break through, so I will choose to sell at a high level
Support range: 2380-2364
Resistance range: 2411-2422
Intraday risk data: US initial jobless claims, US June wholesale sales monthly rate
If you have different opinions or questions, please speak up and let’s discuss GOLD’s latest ideas together.
GBPAUD | Short D1 | Market Exec |Technical Confluences for Trade:
- Stochastics are close to Overbought Conditions on D1 and Overbought in both H1 and H4 time-frames
- Price action is close to a Supply Zone
- Price action is close to multiple Resistance Trendlines
Suggested Trade:
Entry @ Area of Interest 1.9270 - 1.9380
SL @ 1.9503
TP 1 @ 1.9017 (Close Half-Position & move SL to Entry level once TP1 is achieved)
TP 2 @ 1.8745
Risk-to-Reward @ Approx. 2.87 (Depending on Entry Level)
________________________________
Boosts 🚀, Follows ✌️, Shares 🙌 & Comments ✍️ are much appreciated!
If you have any ideas or charts, do share them in the 'Comments' section below and we can discuss our perspectives to improve or strengthen our strategies.
If you want something analyzed, do drop me a DM. :D
________________________________
Disclaimer: The above suggestion is an personal opinion in general and does not constitute as investment advice. Any decisions taken based on the above suggestion is purely your own risks.
Any websites / brokers / applications suggested here are also provided as informational purpose only.
Japan Nikkei index- just a quick post to show u something.
- As always everything is in the graphic.
- Now look at Japan Index closely.
- So a quick crash happened but look where Nikkei Bounced.
- i always speak in my posts that :
- " Supports are always turning to resistances ".
- " Resistances are always turning as supports ".
- Here you have a perfect exemple with Nikkei225.
- if u can trade Cryptos, u can trade anything else!
Happy Tr4Ding !
XAUUSD Poised for a Massive Breakout: Are You Ready?Chart 1: 4-Hour Timeframe
Trend Analysis:
The chart shows a clear upward trend, forming higher highs and higher lows.
A wedge pattern is visible with converging trend lines indicating a potential breakout scenario.
Key Levels:
Support: Around 2348.248 (4hr LQZ).
Resistance: Approximately 2412.240.
Major Resistance: The upper trendline around 2480.
Recent Price Action:
The price has recently tested the lower trendline support and is currently retracing upwards.
A lower high (LH) has formed around 2480, suggesting a potential reversal or consolidation phase.
Potential Scenarios:
Bullish: If the price breaks above the 2412 resistance, it may retest the upper trendline around 2480.
Bearish: A break below the 4hr LQZ at 2348.248 could signal further downside towards the daily LQZ at 2267.320.
Chart 2: 1-Hour Timeframe
Trend Analysis:
A shorter-term view confirming the upward trend with higher highs and higher lows.
The formation of a wedge pattern indicates consolidation within a narrowing price range.
Key Levels:
Support: Around 2348.248 (4hr LQZ).
Resistance: Approximately 2412.240, coinciding with the previous chart.
Recent Price Action:
Price recently bounced off the 4hr LQZ support level and is now hovering near the 2412 resistance.
The lower high (LH) indicates sellers are stepping in around the 2412 level.
Potential Scenarios:
Bullish: Breaking and closing above 2412 could lead to further upside towards 2480.
Bearish: Rejection at 2412 and a break below recent lows could target the 4hr LQZ support at 2348.248.
Chart 3: 15-Minute Timeframe
Trend Analysis:
Short-term consolidation observed within a wedge pattern.
Recent price action indicates potential for a breakout or breakdown from this pattern.
Key Levels:
Support: Around 2348.248 (4hr LQZ).
Resistance: Approximately 2412.240.
Recent Price Action:
Price is consolidating just below the 2412 resistance level, forming a wedge pattern.
The 15-minute timeframe shows the price struggling to break above 2412.
Potential Scenarios:
Bullish: A breakout above the wedge and 2412 resistance could lead to a quick move towards 2480.
Bearish: A breakdown from the wedge could revisit the 4hr LQZ support at 2348.248.
Conclusion
The overall trend across multiple timeframes remains bullish with key resistance at 2412 and significant support at 2348.248. A break above 2412 could signal further upside towards 2480, while a failure to break and sustain above this level may lead to consolidation or a pullback to the 4hr LQZ support. Monitoring price action around these key levels will provide insights into the next directional move.
USDCHF: Key Level Rejection, Fibonacci Retracement ExpectedPrice recently broke out of the daily (D) descending channel. It then pushed up to meet the daily (D) 50% Fibonacci retracement level, converging with resistance. Price then rejected this level and pushed down to retest support before breaking out of the four-hour (4H) downtrend line, suggesting strong bullish momentum. Price then pushed up and reached the daily (D) key level and converged with yet another 50% Fibonacci level. Price has proceeded to reject this level, highlighting temporary reversal and suggesting a possible retracement. I expect price to temporarily retrace to around the 38.2% level before continuing to the upside.
**Rationale:**
**Rationale:**
~ (L1): Breakout of channel (D)
~ (L2): Retest of support (D)
~ (L3): Break of trendline (4H)
~ (L4): Retest of support
~ (L5): Fib retracement convergence + Rejection
~ (F1): 38.3% Fib retracement
**Disclaimer:**
My trading ideas are market predictions and therefore should be viewed as such. As an intraday trader (scalper), I use my observations to identify potential trade opportunities on the higher time frames. I then aim to pinpoint key entry points on the lower time frames. Entries should always be verified by additional confirmations.
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#scalping
#intraday
GBPCHF | Short D1 | Market Exec | Incoming Risk-OffTechnical Confluences for Trade:
- Stochastics are in Overbought Conditions on D1 and H1 time-frames
- Stochastics are also Overbought in multiple Cross-CHF pairs and even on USDCHF pair.
- Price action is close to a Supply Zone
- Price action is close to multiple Resistance Trendlines & top of Parallel Channel as well
- Targeting the 38% Fibo retracement for this trade
Fundamental Confluences for Trade:
- There seems to be some disconnect between asset classes and with everyone already so 'risk-on', the risk-off build up momentum is ripe for the taking.
Suggested Trade:
Entry @ Area of Interest 1.1570 - 1.1650
SL @ 1.1718
TP 1 @ 1.1425 (Close Half-Position & move SL to Entry level once TP1 is achieved)
TP 2 @ 1.1276
Risk-to-Reward @ Approx. 2.60 (Depending on Entry Level)
________________________________
Boosts 🚀, Follows ✌️, Shares 🙌 & Comments ✍️ are much appreciated!
If you have any ideas or charts, do share them in the 'Comments' section below and we can discuss our perspectives to improve or strengthen our strategies.
If you want something analyzed, do drop me a DM. :D
________________________________
Disclaimer: The above suggestion is an personal opinion in general and does not constitute as investment advice. Any decisions taken based on the above suggestion is purely your own risks.
Any websites / brokers / applications suggested here are also provided as informational purpose only.
Short-Term Resistance Calling for Attention on USD/JPYSince topping at ¥156.77 on 14 May, short-term price action on the H1 chart for the USD/JPY has exhibited a downside bias. Of late, as you can see, recent flow chalked up a pullback from a low of ¥153.60 and has initiated the process of forming the D-leg of an ‘alternate’ AB=CD bearish formation at ¥154.95 (marked by a 1.618% Fibonacci projection ratio). The rationale behind selecting this alternate pattern, and not the 1.272% Fibonacci projection ratio (or the equidistant AB-CD), is simply down to the confluence that the 1.618% Fibonacci projection attracts: a 61.8% Fibonacci retracement ratio at ¥154.97 and a nearby 38.2% Fibonacci retracement ratio at ¥154.81.
INJUSDT Poised at All-Time High: Breakout or Breakdown LoomsINJUSDT is on the verge of a critical juncture, approaching its all-time high of $43.35 on the daily chart. The price has been consolidating recently, attempting to break above this resistance level four times.
Technical Analysis:
Resistance: $43.35 (All-Time High)
Support: $32.23
Relative Strength Index (RSI): Supported at 50
Volume: Increasing volume coincides with attempts to break resistance
Key Observations:
INJUSDT is facing a significant hurdle at its all-time high. A breakout above this level could signal further upward momentum.
The price has been consolidating recently, suggesting a potential period of indecision before the next directional move.
The RSI remains at a neutral level (around 50), offering no clear directional bias.
Increasing volume during the recent price attempts at the resistance level indicates strong buying pressure, potentially aiding a breakout.
If the price fails to break above resistance, it could find support at $32.23.
Conclusion:
The upcoming move for INJUSDT hinges on its ability to overcome the all-time high resistance level. A successful breakout could lead to further gains, while a rejection might trigger a pullback towards the $32.23 support level.
This information is for educational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions.
Next Nears All-Time High: Key Levels to WatchThe cryptocurrency Next is on the verge of breaking its all-time high (ATH) of $0.41390 on the weekly chart. If the price breaks above this resistance level, it could signal further gains for the token. However, if the price fails to break through this level, it could find support at $0.34618, the next key level is $0.31143.
Technical Analysis:
Resistance: $0.41390
Support: $0.34618
Relative Strength Index (RSI): 65
Moving Average Convergence Divergence (MACD): Bullish
Volume Analysis:
The volume of Next has been increasing steadily over the past few weeks, which is a bullish sign. This suggests that there is strong buying pressure behind the token.
Price Consolidation:
The price is currently in a small consolidation range. However, since the overall trend is bullish, there is a good chance that the price will break out of this range and continue its upward movement. The next support level is at $0.31143.
RSI Divergence:
There is a bullish divergence between the price and the RSI indicator. The price has made a new high, but the RSI has not. This suggests that the upward momentum is still strong and that the price is likely to continue to rise.
Conclusion:
The technical indicators for Next are bullish, suggesting that the price could continue to rise in the near future.
The information provided in this article is not intended as financial advice. Please do your own research before making any investment decisions.
AUDUSD Daily Analysis: Key Resistance Levels to WatchThe USD is facing a key resistance level at 0.64537. If this level is broken, the currency could fall to a monthly resistance level at 0.63403.
This week there are some important news events for the USD. These include:
The US Federal Reserve interest rate decision
The US non-farm payrolls report
The US trade balance report
These events could have a significant impact on the USD, so traders should be prepared for volatility.
Technical Analysis:
The USD is currently trading in a range between 0.64537 and 0.63403. The RSI indicator is nearing the overbought zone, which suggests that the currency may be due for a pullback.
Traders should watch for a break below the 0.63403 support level, as this could signal a further decline in the USD.
Conclusion:
The USD is facing a key resistance level at 0.64537. If this level is broken, the currency could fall to a monthly resistance level at 0.63403.
Always check the news before making any trades, as this week there are some important news events for the USD. These events could have a significant impact on the USD.
The information provided in this article is not intended as financial advice. Please do your own research before making any investment decisions.
Bitcoin Analysis: Correction or Continuation?📈✅Bitcoin is the largest cryptocurrency by market capitalization. It has been on a bullish trend since the beginning of the year.
🔍Bitcoin has broken out of the primary resistance at $30,750 and has started a new primary trend. The price is currently in a very important supply zone near the ATH and we can expect a correction or pullback.
🚀The ascending channel has been broken from above and the price is continuing its movement with a curved trendline. The target of the channel is between $85,000 and $90,000.
🛒If the price starts to correct from here, we can wait for confirmation of the price for buying in the ranges of $42,500 to $45,000 and $35,000 to $37,000.However, if the resistance at $69,000 is broken, we should wait for it to start correcting and enter the correction.
🗯The RSI oscillator is also in the overbought zone and is facing resistance at 88. It may come out of the overbought zone, however, if it can break its resistance, it can move up to 95, in which case the price is likely to hit the channel target.
📊In terms of volume, it has increased after breaking $30,750 and is confirming the trend.
💎If you have bought Bitcoin from the lower levels, I suggest you wait for it to react to the resistance and if it rejects and makes a heavy red candle, you can take profit. If the supply zone is also lost, you can still hold.
🧠💼 This is not financial advice, and it is only my personal opinion on this cryptocurrency. Please do your own research before making any investment decisions.
#Finnifty Trading Important levelsOn 15 Min Timeframe, FINNIFTY trading important levels. Time to wait for either breakout or Breakdown (reversal) for the Finnifty.
Breakdown Move
- Confirmation for breakdown will be if Finnifty starts trading and sustain below 21450 level
- Downside rally nearly 300 points expected in case of breakdown
- Intermediate support expected near 21250- level
- Short Trader can place there stop loss if finnifty starts trading above 21550 level
Breakout move
- Long side movement expected in case banknifty starts trading and sustain above 21550 level
- Above this level finnifty can go upto the 21880+ level.
- Intermediate resistance expected near 21750 level
- Long trader can place there stop loss if finnifty starts trading below 21450 level.
Mastering Support and Resistance: Part 1Hello Traders, and welcome to a new year of endless learning opportunities! Today, we will kick off 2024 by exploring the concept of support and resistance, how to identify these levels and common misconceptions about them. Support and resistance levels play a crucial role in technical analysis and can greatly impact your trading strategy. Understanding these levels and knowing how to effectively use them can make all the difference in your trading success. We will be doing a deeper dive in a subsequent article later this week where we will cover more advanced techniques and the psychology behind support and resistance. In the meantime, are you ready to dive in?
Understanding Support and Resistance Levels in Trading
Support and resistance levels are key aspects of technical analysis that traders incorporate into several different trading decisions. Support refers to a price level where buying pressure is expected to be strong enough to prevent the price from falling further. On the other hand, resistance is a price level where selling pressure is expected to be strong enough to prevent the price from rising higher. These levels are based on the idea that markets often go through similar patterns and respond to certain prices.
The Importance of Support and Resistance in Technical Analysis
Support and resistance levels are crucial in technical analysis for several reasons. Firstly, they provide traders with valuable information about market sentiment. When the price approaches a support level, it indicates that buyers are likely to step in and try to push the price up. Conversely, when the price approaches a resistance level, it suggests that sellers are likely to enter the market to push the price down. Understanding market sentiment can help traders avoid potential losses.
Secondly, support and resistance levels act as a reference point for setting profit targets and stop-loss levels. By analyzing historical price movements, traders can identify key support and resistance levels that are likely to be tested in the future. These levels can be used to determine when to take profits or cut losses, providing a clear framework for risk management.
Lastly, support and resistance levels can act as confirmation tools for trading signals. For example, if a trader receives a buy signal from a set of technical indicators and the price is approaching or bouncing off of a strong support level, it adds credibility to the signal.
Similarly, if a sell signal is generated and the price is approaching or moving away from a major resistance level, it strengthens the validity of the signal. By combining support and resistance levels with other technical indicators, traders can increase the accuracy of their trading signals.
Identifying Support and Resistance Levels on Price Charts
Identifying support and resistance levels on price charts is a fundamental skill for any trader. Several methods can be used to identify these levels, depending on the trader's preference and trading style. Here are a few common techniques:
Swing Highs and Lows: Horizontal support and resistance levels can be identified by analyzing price charts. A support level is typically formed by connecting multiple swing lows, where the price has previously bounced back up. Conversely, a resistance level is formed by connecting multiple swing highs, where the price has previously reversed its upward trajectory. By identifying these levels, traders can anticipate potential reversals or breakouts and adjust their trading strategy accordingly.
It is important to note that support and resistance levels are not exact price points, but rather zones where buying or selling pressure is expected to be strong. Traders should use a combination of these techniques and exercise discretion to identify the most relevant support and resistance levels on their price charts.
Moving Averages: Moving averages are commonly used to identify trends in price charts, but they can also act as dynamic support and resistance levels. For example, a 200-day moving average is often considered a strong support or resistance level. When the price approaches this moving average, it is likely to either bounce off or breakthrough, depending on the prevailing trend.
Fibonacci Levels: Fibonacci levels are based on mathematical sequences. These levels are used to identify potential support and resistance levels based on the percentage retracement of a previous price move. Traders often look for confluence between Fibonacci levels and other technical indicators to increase the reliability of their analysis. Several different tools on TradingView can be used to identify these levels such as a Fibonacci retracement or Fibonacci Channel.
How to Effectively Use Support and Resistance in Your Trading Strategy
Once you have identified support and resistance levels on your price charts, it is important to know how to effectively use them in your trading strategy. Here are some key considerations:
Combine with other indicators: Support and resistance levels should not be used in isolation but should be combined with other technical analysis techniques. Relying solely on support and resistance levels can result in false signals, as price can break through or reverse at unexpected times. Consider using trend lines, candlestick patterns, or oscillators to confirm your support and resistance levels and increase the accuracy of your trading signals.
Price Action: Observing price action around support and resistance levels can provide valuable insights into market sentiment. Look for signs of price rejection, such as long wicks or multiple failed attempts to break through a level. Price patterns may also form around support or resistance levels. These signs can indicate potential reversals or breakouts.
Risk Management: Support and resistance levels can be used to determine stop-loss levels and profit targets. When entering a trade, set your stop-loss just below a support level for long positions or just above a resistance level for short positions. Similarly, set your profit target at the next significant support or resistance level to ensure a favorable risk-reward ratio.
Multiple Timeframes: Analyzing support and resistance levels across multiple timeframes can provide a broader perspective on market dynamics. A level that appears strong on a daily chart may be insignificant on a weekly or monthly chart. Consider higher timeframe levels for long-term trades and lower timeframe levels for short-term trades.
Common Misconceptions About Support and Resistance
There are several common misconceptions about support and resistance levels that traders should be aware of. Understanding these misconceptions can help you avoid common pitfalls and make better trading decisions. Here are three common misconceptions:
Support and Resistance Levels Are Fixed: One of the most common misconceptions is that support and resistance levels are fixed and remain unchanged over time. In reality, these levels are dynamic and can shift as market conditions change. Traders should regularly reevaluate and adjust their support and resistance levels based on new price information.
Support Turns into Resistance and Vice Versa: Another misconception is that support levels always turn into resistance levels when broken, and vice versa. While this can sometimes be the case, it is not always true. Market dynamics can change, and a support level that has been broken may become irrelevant in the future. Traders should not blindly assume that a broken support level will act as a strong resistance level.
Support and Resistance Levels Are Foolproof: Many traders mistakenly believe that support and resistance levels are infallible and always result in predictable price movements. While these levels can provide valuable guidance, they are not guaranteed to hold or reverse the price. Traders should always use support and resistance levels in conjunction with other technical analysis tools and exercise proper risk management.
By understanding these misconceptions, traders can avoid relying solely on support and resistance levels and develop a more comprehensive trading strategy. We implore you to be thorough in practice and understanding of S&R as there is a great degree of subjectivity to them. The more you understand about these levels the greater accuracy you can obtain.
Tips for Mastering Support and Resistance
Mastering support and resistance requires practice and experience. Here are some tips to help you improve your skills in identifying and utilizing these levels:
Backtesting: Backtesting is a valuable tool for evaluating the effectiveness of support and resistance levels in historical price data. By analyzing past price movements, you can assess how well your identified levels have held or reversed the price. This can provide valuable insights into the reliability of your levels and help you refine your approach.
Focus on Key Levels: Not all support and resistance levels are equally significant. Focus on key levels that have been tested multiple times and have resulted in strong price reactions. These levels are more likely to hold or reverse the price and can provide more reliable trading opportunities.
Practice Patience: Support and resistance levels often require patience to be effective. Wait for clear confirmation before entering a trade, and avoid chasing price or making impulsive decisions based on a single level. Patience and discipline are key to successful trading.
By incorporating these tips into your trading routine, you can enhance your mastery of support and resistance levels and improve your trading performance.
What Does it All Add Up To?
In conclusion, understanding and mastering support and resistance levels is crucial for successful trading. These levels provide valuable information about market sentiment, act as reference points for setting profit targets and stop-loss levels, and can confirm trading signals. By identifying support and resistance levels on price charts using techniques like swing highs and lows, moving averages, and Fibonacci levels, traders can make better judgments in deciding what actions to take. However, it is important to use support and resistance levels in conjunction with other indicators and consider price action for confirmation. Overall, integrating support and resistance levels into a trading strategy can help break through barriers and achieve trading success.
DXY's Recent Shifts: Insights and ObservationsD ear Esteemed TradingView Community,
I'm sharing my recent analytical insights into the movements of the Dollar Index (DXY). Please note that the following reflections are not financial advice but rather a comprehensive analysis based on my observations.
This week, DXY experienced a notable descent, and my analysis, driven by AI natural language processing, suggests a correlation with global news developments. Strikingly, the influence of news events appears to have a more significant impact on price action than technical indicators. As DXY found its way down, it eventually landed in a support zone. While this decline signals a bearish sentiment, it's crucial to recognize that the current position also places DXY in a support zone. Historical data indicates that predictions originating from support zones tend to favor upward price trends. Although some indicators still hint at a potential bearish outcome, extending downwards to the underlying support zone around $101 (as indicated by the blue rectangle), this zone might also act as a reversal point. Notably, the current support level aligns with the Exponential Moving Average (EMA) of 200, adding a layer of significance to its potential impact.
In this scenario, careful observation becomes paramount. One can monitor whether the price breaks below EMA 200, potentially signaling a short position with a target at the underlying support zone. Conversely, a long idea could play out if the observed support level, coinciding with EMA 200, acts as a shield, propelling DXY upward. It's essential to exercise caution when contemplating short positions from the current level, given its classification as a support zone. The risk-reward ratio may not favor such a strategy at this juncture. Adding a layer of complexity to the analysis is DXY's correlation with the stock market. The potential for DXY to follow a bearish trajectory could be heightened by a flourishing stock market. Conversely, a bounce in DXY might indicate a retracement in the context of a thriving stock market.
In conclusion, the intricacies of DXY's current position warrant careful consideration. The interplay between support zones, technical indicators, and global events introduces a degree of uncertainty. As we navigate these waters, it's crucial to remain vigilant and adaptable in our approach to market analysis.
With regard and an understanding heart,
Ely
AI-Driven Analysis: TSLA's Possible Outlook and Tactical EntriesDear Esteemed Members of the TradingView Community,
I n our continuous pursuit of precision, we've harnessed the analytical power of cutting-edge AI technology, utilizing a harmonious blend of Autoregressive Integrated Moving Average (ARIMA) and Seasonal Decomposition of Time Series (STL) methodologies to decode the market trends from June 26, 2023, to November 4, 2023.
O ur AI indicates a prevailing bearish sentiment in this time frame, which traditionally corresponds to a sequence of lower lows. The chart exhibits a prominent white trendline, gracefully outlining the descending support trajectory of this bearish trend and pinpointing potential regions for the emergence of new lower lows. Should this trendline remain intact, a target price range for short positions spans from $175 to $195.
F or those contemplating entry into a short position, we suggest closely monitoring the nearest resistance levels. In bearish trends, historical support levels often transition into formidable resistance points. To map these potential hurdles, the AI has nimbly employed the K-Nearest Neighbors (K-NN) algorithm, highlighting two key resistance zones: "Resistance 1" and "Resistance 2." Resistance 1, marked by the vibrant red line, stands as the immediate barricade, while Resistance 2, also vividly red, awaits in the wings should Resistance 1 be breached. These insights have inspired us to craft two scenarios for your strategic consideration.
I n Scenario 1, we envisage Resistance 1 rejecting the price action, ushering in a descent towards the coveted target price zone. In Scenario 2, an alternate narrative unfolds, where the bulls surge past Resistance 1, eventually carving out a consolidation phase between the two resistance lines. Ultimately, this tactical hiatus is followed by an ebbing of market enthusiasm, permitting the anticipated descent into the target zone.
A perceptive examination of the volume reveals an uptick in selling pressure on TSLA, commencing on October 17, 2023. The red volume candles in the white circle signify an influx of market sell transactions, surpassing the norm. This pattern aligns with a prevailing bearish sentiment, setting the stage for a potential decline in keeping with our bearish expectations.
W hile on the indicators, the Relative Strength Index (RSI) appears. It's a tool often wielded together with others by seasoned traders. Although we've already discussed various indicators, it's worth casting an eye over the RSI. The RSI is signaling a persistent selling inclination in the market, displaying no discernible signs of waning. When considered in conjunction with the volume data and AI-derived insights, it further bolsters the case for impending bearish continuations.
tl;dr version:
T o sum up, here's a snapshot of the elements of our analysis:
Position: Short
Trend: Bearish
Entry: Near Resistance 1 or Resistance 2 (depicted in red)
Target Price Zone: $175-$195
Stop Loss: Positioned above the noted resistances
Indicators: ARIMA, STL, K-NN, Volume Candle Analytics, Trendline Analytics, RSI
H owever, please be mindful that this analysis is not an investment advice. Past performance is not indicative of future results. The trading parameters should be in line with your unique risk tolerance. It's crucial to undertake your individual research and remember to implement a range of safeguards, such as Stop Loss, Trail Profit, Target Price, Trade Timeout, and Liquidity Check. The ever-fluctuating market can often spring surprises, venturing into scenarios that may differ significantly from those outlined in this analysis.
Warm regards,
Ely
EUR-USDEUR-USD currently traded at 1.06650 near at resistance level seen as double top. Market range at price then down to 1.06350.
