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Reversalpattern

SILVER Neckline BreakHi Traders! SILVER has broken below the neckline break in its head-and-shoulders pattern, and there is a possibility for a continuation to the downside if the market continues to stay below the neckline. Here are the details: After the initial momentum break below the neckline, the market is now retesting the neckline as resistance, and the 20 EMA has lined up perfectly with it. We are looking for the market to stay below both the neckline and 20 EMA and look for exit targets near the 21.90 level. Preferred Direction: Sell Technical Indicators: 20 EMA Resistance: 23.650 Support: 22.681 Please make sure to click on the like/boost button 🚀 as your support greatly helps. Trade safely and responsibly. BluetonaFX
CAPITALCOM:SILVERShort
by BluetonaFX
Alibaba - Buy The DipHello Traders, welcome to today's analysis of Alibaba. -------- Explanation of my video analysis: Starting in 2016 Alibaba created a pretty obvious higher timeframe bullish reversal which was followed by a crazy bullrun on Alibaba stock. In 2021 Alibaba broke below a major bullish trendline and dropped more than -70%. If we see another bullish reversal at the $65 level and a break above the trendline mentioned in the analysis, I am looking for bullish trading setups. -------- I will only take a trade if all the rules of my strategy are satisfied. Let me know in the comment section below if you have any questions. Keep your long term vision.
NYSE:BABA
by basictradingtv
1
XAUUSD | GOLDSPOT | New perspective | follow-up detailsThe price of gold surged significantly on Friday, driven by a risk-averse sentiment stemming from escalating tensions in the Red Sea. The US and the UK responded to Houthi's attack on a US ship on Thursday, prompting a surge in gold purchases as the conflict in the Middle East intensified. Additionally, the yellow metal received a boost from the decline in US Treasury bond yields, fueled by growing speculation that the US Federal Reserve would embark on aggressive rate cuts as early as March. Simultaneously, the latest US inflation report unveiled that producer prices, or the PPI, fell below expectations, with the monthly PPI dropping by -0.1%, contrary to the anticipated 0.1% increase. As of now, the market sentiment remains inclined towards an upward trajectory, following a rebound from the weekly lows in price action. XAUUSD Technical Analysis: In this video, we dissected the XAUUSD chart from a technical standpoint, analyzed the key levels, analyzed historical price moves, market behaviors, and buyer-seller dynamics, and uncovered potential trading opportunities. The $2,035 zone will be our center stage for this week. Its historical significance makes it a crucial point. If the bullish momentum is sustained then a continued buying pressure above this zone will serve as a platform for new highs. However, if price action drops below the $2,035 level and selling pressure persists below the zone, we could witness renewed selling pressure. Dive into the latest Gold market dynamics! Stay informed for strategic investment decisions. #GoldMarket #SafeHavenAssets 📺🔔💼 Disclaimer Notice: Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy. It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances. Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it. Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
PEPPERSTONE:XAUUSD
by darcsherry
Spot Bullish and Bearish Divergence PatternsHow to trade with Divergence? A condition where the price candles’ tops or bottoms point in a different direction from the corresponding tops or bottoms of the oscillator's signal line is called a divergence. Such divergence can be bullish or bearish. In simple words, the price movement is opposite to the stochRSI, Price lower lows, stochRSI higher lows = bullish divergence>go buy Price higher highs, stochRSI lower highs = bearish divergence>go sell
NYMEX:CL1!
by TraderAsist
XAUUSD | GOLDSPOT | New perspective | follow-up detailsHappy New Year Traders! Gold surged, reaching a daily peak above $2,060, propelled by a nearly 1% decline in the benchmark 10-year US Treasury bond yield on Friday. This movement was triggered by a mixed bag of macroeconomic data releases from the US, intensifying the rally for XAU/USD. The safe-haven asset exhibited notable volatility following the release of the mixed US economic data, revealing a robust US labor market but a weaker service sector. As a response, markets swiftly recalibrated their dovish bets on the Federal Reserve (Fed), shifting to higher odds of an earlier initiation of the easing cycle. In December, the US labor market delivered an impressive performance, highlighted by the Nonfarm Payrolls report, which surpassed expectations by adding 216,000 jobs. This figure not only exceeded the consensus prediction of 170,000 jobs but also marked a significant improvement from the previous month's addition of 173,000 jobs. Moreover, Average Hourly Earnings experienced a monthly increase of 0.4%, surpassing the forecasted 0.3%, and maintaining pace with the previous month. The Unemployment Rate for December remained stable at 3.7%, slightly lower than the anticipated 3.8%. On the flip side, the Institute for Supply Management (ISM) Services PMI for December recorded a decline to 50.6, falling short of the market expectation of 52.6 and underperforming the previous figure of 52.7. This decline in the US Dollar potentially curtailed the downside for Gold for the remaining session. As we look ahead to the upcoming week, what are our expectations? XAUUSD Technical Analysis: In this video, we dissected the XAUUSD chart from a technical standpoint, analyzed the key levels, analyzed historical price moves, market behaviors, and buyer-seller dynamics, and uncovered potential trading opportunities. The $2,035 zone will be our center stage for this week. Its historical significance makes it a crucial point. If the bullish momentum is sustained then a continued buying pressure above this zone will serve as a platform for new highs. However, if price action drops below the $2,035 level and selling pressure persists below the zone, we could witness renewed selling pressure. Dive into the latest Gold market dynamics! Stay informed for strategic investment decisions. #GoldMarket #SafeHavenAssets 📺🔔💼 Disclaimer Notice: Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy. It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances. Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it. Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
PEPPERSTONE:XAUUSD
by darcsherry
2
How you can earn money from this ICT setup?Here you are, please read the summary about Oil price below~ 📈 Oil prices surged in early trade on Thursday, extending the previous day’s sharp gains on concerns about Middle Eastern supply following disruptions at a field in Libya and heightened tension around the Israel-Gaza war. 🛢️ Brent crude rose 33 cents, or 0.42%, to $78.58 a barrel by 0101 GMT, while U.S. West Texas Intermediate crude futures rose 40 cents, or 0.55%, to $73.10. 📈 Both benchmarks rose by around 3% to settle higher for the first time in five days on Wednesday, with WTI seeing the biggest daily percentage gain since mid-November. 🚫 On Wednesday, local protests forced a full shutdown of production at Libya’s Sharara oilfield, which can produce up to 300,000 barrels per day. The field, one of Libya’s largest, has been a frequent target for local and broader political protests. 💥 Also on Wednesday, nearly 100 people were killed in blasts at an event to commemorate commander Qassem Soleimani who was killed by a U.S. drone in 2020. Iranian officials blamed unspecified “terrorists” and vowed revenge. However, no group has yet taken responsibility for the attack. The U.S. has seen no indication Israel was behind the blasts, White House national security spokesperson John Kirby said. 🔥 Swirling regional tensions from the ongoing Israel-Hamas war also continue to support oil prices. 🚀 On Tuesday, Hamas’ deputy leader was killed in a strike in Beirut - the first strike to hit the Lebanese capital in almost three months of near daily fire between the Israeli military and Iran-backed Hezbollah that had been confined to the border region. 🚢 Shipping concerns in the Red Sea also remained after Yemen’s Iran-backed Houthis said on Wednesday they had “targeted” a container ship bound for Israel. U.S. Central Command said the militant group had fired two anti-ship ballistic missiles in the southern Red Sea the previous day. Technical Analysis: As we can see there are demand zone and FVG near $68 to $70 since the middle of 2023. Here is a sharp rebounce (Pin bar) on the demand zone. A good ICT Long setup for both Swing and Intraday traders!
BLACKBULL:WTILong
by ICT_Trader_SB
US100 16868.6 +0.4% IDEA AHEAD OF THE CPIGOOD DAY TRADER Hope everyone is great a look at the NASDAQ, S&P 500 & US30 ahead of HIGH IMPACT NEWS TODAY. * Its been a bullish week for all the above mentioned indices alike as we see a rejection on the weekly time-frame. AS WE SCALE LOWER TO THE DAILY TIME-FRAME * We swept those historic highs and rejected back into the range. NASDAQ DAILY * The NASDAQ tested the 50% FIB as we see a rally up * Continuation is possible just as a possibility of sweeping the high. S&P 500 DAILY Same as NASDAQ we see the same setup on the US500 DOW JONES DAILY * THE DOW is highly bullish this bring some interest Ahead of CPI. * Traded Above the hostoric highs and kept there range bound for a some weeks. * It will be interesting to see a push higher here but anticipating some reversals. * With some projections there is still room above we see -2 projection and -4 projection yet to be tested. A JUMP TO THE HOURLY TIME FRAMES NASDAQ 1H T/F * Beautiful bullish trend * On high alert for signs of momentum shift but we remain strongly Bullish. * We do see a cisd but this alone is not enough. awaiting more confirmations. * THE SAME WITH THE S&P 500 US 30 1H * Some bearish momentum coming into play. * premature to decide ahead of high impact news but it would be great to see some reversal before continuation with the trend. * LIKE I MENTIONED AWAITING TO SEE SOME SORT OF REVERSALS ON THE INDICES BUT IF CONTINUE BULLISH WE RIDE THE TREND *** TRADING HIGH IMPACT NEWS IS HIGHLY RISK AS THE VOLITILITY IS CRAZY THIS IS NOT ADVISE TO EXCECUTE DURING THIS HIGH IMPACT NEWS*** HOPE YOU ENJOYED THIS OUT LOOK, SHARE YOURS BELOW🛑 lets see how it goes. IF THIS IDEA ASSISTS IN ANY OR IF YOU LIKE THIS ONE SMASH THAT LIKE BUTTON & LEAVE A COMMENT. ALWAYS APPRECIATED ____________________________________________________________________________________________________________________ * Kindly follow your entry rules on entries & stops. |* Some of The idea's may be predictive yet are not financial advice or signals. | *Trading plans can change at anytime reactive to the market. | * Many stars must align with the plan before executing the trade, kindly follow your rules & RISK MANAGEMENT. _____________________________________________________________________________________________________________________ | * ENTRY & SL -KINDLY FOLLOW YOUR RULES | * RISK-MANAGEMENT | *PERIOD - I TAKE MY TRADES ON A INTRA DAY SESSIONS BASIS THIS IS NOT FINACIAL ADVICE TO EXCECUTE ❤ LOVELY TRADING WEEK TO YOU!
CAPITALCOM:US100
by PULEMokhothu
4
XAUUSD | GOLDSPOT | New perspective | follow-up detailsFollowing the US Federal Reserve's dovish pivot, the market experienced a shift in sentiment when New York Federal Reserve President John Williams expressed reservations about rate cut expectations, emphasizing the central bank's commitment to maintaining inflation at its 2% target. This development led to a rebound in US Treasury bond yields, providing some optimism for the US Dollar. As we navigate through crucial macroeconomic data, including the Fed meeting, the market is processing this information, with the upcoming week poised to influence the direction of price action as we approach the end of the year. It is anticipated that the trends observed over the past six weeks will likely continue to year-end, albeit at a more subdued pace. XAUUSD Technical Analysis: In this video, we dissected the XAUUSD chart from a technical standpoint, analyzed the key levels, analyzed historical price moves, market behaviors, and buyer-seller dynamics, and uncovered potential trading opportunities. The $2,030 zone will be our center stage for this week. Its historical significance makes it a crucial point. If the bullish momentum is sustained then a continued buying pressure above this zone will serve as a platform for new highs. However, if price action stays below the $2,030 level and selling pressure persists below the zone, we could witness renewed selling pressure back into the demand zone at the $1,960 zone. Generally, Gold remains bullish following a strong rebound from $1,970 on Wednesday. The pair, however, needs to breach the $2,050 resistance area to confirm the bullish view. Dive into the latest Gold market dynamics! Stay informed for strategic investment decisions. #GoldMarket #SafeHavenAssets 📺🔔💼 Disclaimer Notice: Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy. It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances. Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it. Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
PEPPERSTONE:XAUUSD
by darcsherry
BUNNY: Very Low Cap Crypto Gem, High Risk with UNLIMITED UPSIDE!Hello everybody! PancakeBunny (BUNNY) operates as a DeFi yield aggregator and optimizer specifically designed for the Binance Smart Chain ecosystem. Emphasizing auto compounding, the PancakeBunny protocol empowers farmers to optimize their yields within the DeFi landscape. Current Market Cap: Only $80K Listed on: MEXC, PancakeSwap, and Jubi exchanges. Potential for 10X to 100X or even more Growth during the 2024 Crypto Bull Run. Technical Analysis: You can observe the formation of an inverse head and shoulders pattern around the 0.058 Level on the MONTHLY chart, indicating the potential for a HUGE reversal and then The Sky is Limit! DISCLAIMER: This is not financial advice; everything you do is at your own risk!
Long
by DegenTrader100X
EURUSD Double Top OpportunityHi Traders! EURUSD is forming a potential double-top pattern, and there is great risk-reward potential for shorting opportunities near the resistance. Here are the details: The market tested the previous month's high of 1.10173, but the bears are holding very strongly around this level, which has currently formed a double-top pattern on the chart. Preferred Direction: Sell Entry Level: 1.09960 Stop Level: 0.65089 Target Level: 1.10771 Technical Indicators: 20 EMA Please make sure to click on the like/boost button 🚀 as your support greatly helps. Trade safely and responsibly. BluetonaFX
Short
by BluetonaFX
4
XAUUSD | GOLDSPOT | New perspective | follow-up detailsGold price retreated and closed at the $2,000 mark for the first time since November 24, extending its losses. This decline follows the latest US employment report, indicating an improving labor market. The US Bureau of Labor Statistics reported the creation of 199K jobs, exceeding forecasts, while the Unemployment Rate dropped to 3.7%. Additionally, University of Michigan (UoM) data showed increased optimism among American households about the economy and a downward revision of inflation expectations. Market focus turns to the upcoming US inflation report and the Federal Open Market Committee (FOMC) meeting. Inflation is expected to remain at 3.1% annually, with no change in monthly inflation, while the Core Consumer Price Index (CPI) is forecasted to stay at 4% unchanged YoY and 0.3% monthly. Traders anticipate the US central bank to maintain current interest rates. As we gear up for a busy week filled with high-impact events from the US economic docket, how should we prepare? XAUUSD Technical Analysis: In this video, we dissected the XAUUSD chart from a technical standpoint, analyzed the key levels, analyzed historical price moves, market behaviors, and buyer-seller dynamics, and uncovered potential trading opportunities. The $2,000 zone will be our center stage for this week. Its historical significance makes it a crucial point. If the bullish momentum is sustained then a continued buying pressure above this zone will serve as a platform for new highs. However, if price action drops below the $2,000 level and selling pressure persists below the zone, we could witness renewed selling pressure back into the demand zone at the $1,960 zone. Dive into the latest Gold market dynamics! Stay informed for strategic investment decisions. #GoldMarket #SafeHavenAssets 📺🔔💼 Disclaimer Notice: Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy. It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances. Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it. Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
PEPPERSTONE:XAUUSD
by darcsherry
GBPUSD | Perspective for the new week | Follow-upDespite the recent retracement, the Pound remains poised for an uptrend continuation. The GBPUSD closed last week's trading session at the 1.25000 handle, holding steady after a stronger-than-expected US Nonfarm Payrolls (NFP) gave the US Dollar (USD) a final boost to end the week. Looking ahead to the coming week, there is a flurry of central bank activity, with the US Fed making its final rate call for 2023 and updating its inflation outlook dot plot, followed by the Bank of England (BoE) and its latest interest rate decision. Both central banks are expected to maintain interest rates at 5.5% and 5.25% respectively to close out 2023. Before the central bank action kicks off, next Tuesday brings UK Average Earnings and Claimant Count Change figures. Projections indicate a potential decline in annualized quarterly average earnings from 7.7% to 7.4% in the third quarter, while November is expected to show a slight increase in the number of unemployment benefits seekers from 17.8K to 20.3K. As we look to the new week, the question remains: What lies ahead for both the US Dollar and the Pound Sterling? GBPUSD Technical Analysis: Will the pound continue its trajectory and sustain its momentum above the $1.200 zone? The stakes are high, and we're on the edge of our seats! The spotlight is on high-impact economic events from both the US docket for clues. Brace yourselves as the anticipation and the actual events may trigger sharp price movements that could present incredible trading opportunities. In this video, we've analyzed the Daily and 4-hour timeframes, exploring bullish and bearish sentiments to uncover the most promising trades for the week ahead. We've delved into key levels, trendlines, and support/resistance points, unveiling essential insights into the current market structure. We are keeping a close eye on the potential range between $1.25000 and $1.25700 where a consolidation could happen before the next BIG move. It's a decisive structure where both sellers and buyers will be vying for control, and how the market reacts here will set the course for GBPUSD in the upcoming days. Stay connected and join the conversation in the comment section to stay updated on the latest developments. Thank you for tuning in, and get ready for more enlightening insights into GBPUSD in our upcoming content. Buckle up for a thrilling journey ahead! Happy trading! Disclaimer Notice: Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy. It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances. Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it. Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
by darcsherry
$JD Potential Reversal: 2-Day DB, Descending Broadening WedgeOverview: NASDAQ:JD (JD.com Inc.) appears to be forming a compelling technical pattern that suggests a potential reversal. The stock has developed a 2-day double bottom pattern, coinciding with a falling wedge setup, all occurring within the confines of a major descending broadening formation. Traders and investors should closely monitor these key technical levels for potential bullish momentum. Key Technical Observations: Double Bottom Pattern: NASDAQ:JD has established a clear double bottom pattern over the past two days, a classic reversal formation characterized by two distinct lows at approximately the same price level. The first low was set , followed by a second low , forming a W-shaped pattern. Falling Wedge Formation: A falling wedge is currently in play, with converging trendlines forming lower highs and lower lows. Falling wedges are often indicative of slowing bearish momentum, and a breakout to the upside could signal a reversal. Descending Broadening Formation: The overall context involves a major descending broadening formation, marked by expanding price volatility within a downward trend. This formation could imply a period of uncertainty and potential for a reversal as the pattern reaches its apex. Potential Trading Strategies: Entry Points: Conservative traders may consider entering long positions upon a confirmed breakout above the upper trendline of the falling wedge. Aggressive traders might explore entry opportunities near the lower trendline, anticipating a bounce within the descending broadening formation. Stop-Loss and Take-Profit Levels: Establish a stop-loss level below the recent double bottom, ensuring protection against a potential breakdown. Identify potential resistance levels within the descending broadening formation as initial take-profit targets. Confirmation Signals: Confirm the bullish reversal with increased volume on the breakout from the falling wedge. Use additional technical indicators, such as RSI and MACD, to validate the strength of the potential reversal. Risk Considerations: Trading involves inherent risks, and it's essential to manage risk effectively. Be cautious of false breakouts and monitor market developments closely. Disclaimer: This analysis is for informational purposes only and should not be considered as financial advice. Always conduct thorough research and consult with a qualified financial professional before making trading decisions.
NASDAQ:JDLong
by STP_MrNodeItAll
SPY: Don’t “Guess” the Top.We can learn a very interesting lesson by looking at the SPY chart. Anyone who tries to guess the next top or bottom is a gambler, not a trader, and as someone who has gambled a lot in the past, this rally brings back some memories. It's very easy for someone to see such an explosive movement and think: "It's already gone up a lot, it's going to have to come down soon". It's very easy to look for clues in other indicators, for example, and get excited when you see the RSI exploding close to 70. Looking for clues that reinforce a pre-existing belief is common among individuals corrupted by the "confirmation bias", which is something else, and would be content for a future article. Still talking about the RSI, it's important to mention that the RSI was already at 70 when the price was at $450. Since then it has risen by more than $20 (approximately 5%), and there is no sign of a top yet. Far from being a criticism of such an efficient indicator, this is just evidence that the use of indicators should be aligned with what we see on the chart. Top or bottom signals are confirmed when we see a clear breakout from a notorious reversal pattern. As we can see from the SPY chart below, just one or two bearish patterns, even when appears close to clear resistance, is not enough. There needs to be confirmation of a good breakout. Perhaps this is one of the reasons why so many are rushing to sell a possible top, even without confirmation. By waiting for confirmation, you sacrifice part of your profits, and amateurs hate that. To feel like a pro, you have to feel the satisfaction of buying the bottom and selling the top, all the time. Which is ironic, because that's not the focus of a professional. A real trader seeks long-term consistency. Speaking for myself, as far as I can see it's a strong rally in the SPY, and the next resistance is the all-time high at $479.98. So far, there is no clear reversal pattern for me, although I personally would like to see a correction to a support point. What if the SPY made a bearish candlestick pattern today? Just as we see on November 9, 15 and 29, and on December 6, a top signal is plausible, but we need to wait for confirmation via a breakout. Otherwise, it would just be another bear trap. Another thing I like to do is wait for a clear bearish reversal structure to appear on shorter time frames, such as the hourly chart. Uptrends are characterized by rising tops and bottoms, and the reverse applies to downtrends. When a stock is in a clear uptrend, but the hourly chart suddenly makes a lower top and bottom, it's a warning sign. If such a reversal occurs near a resistance area, all the better, as was the case with NVDA at the end of last month. One of the most overlooked principles of Dow Theory is the number 6: "Trends Persist Until a Clear Reversal Occurs". When Charles Dow, founder of the Dow Jones index and the Wall Street Journal, began working on the principles more than a century ago, he never imagined that in the 21st century there would still be traders who anticipate and don't wait for confirmation (again, I was among these gamblers in the past). Therefore, trading reversals is interesting and can be very profitable, but you need to base your decisions on technical reasons. I shared how I like to trade reversals, but there are more strategies that you can use. Feel free to share yours. That's the difference between a gambler and a trader. Moreover, remember to follow me for more content like this, and support this idea if you liked it! All the best, Nathan.
AMEX:SPYEducation
by Nathan_The_Finance_Hydra
9
Head and Shoulders Pattern Forming on the DXY Dollar IndexWhen the dollar is running, most other assets are dropping. This has been my experience in the markets and is why the DXY is on my watchlist and is ALWAYS one of the first charts that I check before jumping into the markets. When the DXY is high, that means that people are demanding dollars, and when it's dropping, those dollars are flowing into other assets. Learning to watch the DXY and it's movements will give you some good edge in the markets. Not everything will be effected. There are always other market conditions to watch for, news, etc that can move the markets as well, but keeping your eye on what the USD is doing is certainly something you want to add to your trading routine. So the Head and Shoulders pattern is a strong reversal pattern in the markets. Nothing is ever 100% and the pattern could fail, so you always have to be ready for that. The regular Head and Shoulders is a bearish reversal pattern meaning we have found the local top in that market at that time. An Inverted Head and Shoulders pattern is the opposite. It usually shows at a market bottom and indicates the possibility of bullish movement. What we see here is that the DXY is knocking on the door of a breakout of this pattern and if it keeps going up, well, you will want your trading account to be in the dollar, or looking for shorting opportunities in other assets like crypto and FOREX pairs, that is if you are trading futures or options. If you are trading spot, this is the time to be in the dollar and waiting for your chosen asset to hit a fire sale clearance price, then go in an scoop up what you can with what you have! Of course none of this is financial advice, just some things I have learned along my journey in this crazy world of trading that has helped me make some successful trades. As always make sure you have a solid risk management plan before diving into the deep end! Doing this will help you gain some edge in the markets and trade logically!
TVC:DXY
by thelogicaldude