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Rsi-2

Long Pound-KiwiWith the following noted a long scenario appears to be in play: - bullish reversal bar (near resemblance to bullish pin bar/low test bar) - resistance becomes support (at ~2.3260 which stands out as a weekly level dating back to November 2009 ) - retest of 20 ema and close above - trend line support (third touch) - Rejection of 0.618 Fibonacci level and 50% retracement line, and close above - Stochastic and RSI convergence entry - above high of today's bar stop loss - below low of today's bar target - previous swing high or higher
Long
by amanpaulbhogal
Sell sign on EUR/GBPUsing the following to back a short entry on EUR/GBP on the daily chart: - inside bar - resistance at ~0.7120 - mother candle rejects: - 50 ema and closes below - 0.786 Fibonacci level and closes below - Fibonacci cluster - falling trend line for the 4th time closing within the downward trend channel - Stochastic hidden bearish divergence (comparison of swing highs), and Stochastic and RSI convergence entry - below low of inside bar stop loss - above high of mother bar target - previous swing low or lower
Short
by amanpaulbhogal
Divergence, again, on USD/CADAlthough in a healthy uptrend, USDCAD has run into resistance at ~1.3070 which happens to be a price level on the weekly chart that has previously been tested (as support in April 2004 and resistance in March 2009). Price closed below this level on Friday as a high test bar. Coupled with bearish divergence on the Stochastic and RSI indicator a price action behaviour is suggestive of bearish sentiment. Judging by the optimistic Fed outlook to raise interest rates, and positive expectation from the US economy from improving economic data, a stronger US Dollar is likely to continue. The following short setup banks on a technical perspective to take advantage of a sell signal; potentially a temporary run. entry - below low of high test bar stop loss - above high of high test bar target - previous level at ~1.2771
Short
by amanpaulbhogal
Bearish divergence on USD/CADUsing bearish divergence to build a case for reversal trading on USD/CAD with the following favouring a potential short scenario: - resistance (3rd touch) at ~1.2800 - bearish high test close below resistance - price reaches and closes below 1.272 Fibonacci extension level - Stochastic and RSI bearish divergence entry - below low of high test stop loss - above high of high test (placement is discretionary) target - 20 or 50 ema, or previous horizontal level Caution for conservative traders: Fed Chair Janet Yellen testifies at 10:00 EST
Short
by amanpaulbhogal
The Pattern Trader DilemmaStalking this trade made me remember the lectures I attended few months ago as a fresher. Maybe it might not be directly linked but lets just say I turned the idea of a prisoner dilemma to the Pattern Trader Dilemma. Woke up feeling great, knowing that I'm about to continue my grind, and given today is Monday I wasn't expecting a busy day.As I was analysing the EURUSD chart, I saw three potential bearish patterns forming, AB=CD pattern ( in the dashed lines), Gartley Pattern( Blue-violet colour ) and Bat pattern ( Sea-blue colour ). Knowing trading is about probabilities, I asked myself what if all these trades turns out as losers? I'm I willing to eat all these losers? Which one should I take? There goes the Pattern Trader Dilemma. After few minutes of analysis, I decided to take take the Gartley pattern. I'm expecting a deeper CD leg of the Gartley which will increase the risk : reward on this trade. WHY THE GARTLEY? Although the AB=CD would be valid, in order to be safe, my stops will have to be at the same place as the Gartley, hence the pay-off on this trade would not be favourable. But I was interested in the Gartley because it came into the zone I would be interested in taking a short position. And given its deeper CD leg, the pay-off would be great. What about the Bat? Usually, I would go for the Bat, however, since it's not in the zone, I am prepared to eat the loss on this Gartley and on the Bat, if they are losers.
Short
by 6.1.8.Family
2
AUD/CHF shorting signsSimilar to AUD/CAD, AUD/CHF is setting up for a short opportunity with the following in view: - inside bar following high test bar in pull back to 50ema - price rejection at resistance at ~0.8210 - price retraced to 0.618 Fibonacci level which coordinates well within proximity of resistance at ~0.8210 - Stochastic and RSI in overbought territory - Stochastic and RSI hidden divergence (bearish trend continuation) entry - below inside bar stop loss - above mother bar (above previous high test bar) target - previous swing low at ~0.7830, or lower
Short
by amanpaulbhogal
Short AUD/JPYThe AUD/JPY daily chart displays consecutive lower highs and lower lows with a potential short setup to continue the visible falling trend (supported also by downward trendline). The current corrective phase seems to be running out of steam in initiation of a potential impulsive phase, with the production of a bearish reversal price bar: - ricocheting off a previous level at ~95.20; - rejecting the 50% retracement level which is contiguous to 95.20; - bouncing off and (most likely) closing below the 50 ema; and - bumping into the falling trend line encountering resistance. Convergence is observable on RSI and hidden divergence on Stochastic. Both Stochastic and RSI are in overbought territory and are ostensibly preparing for a reversal. Entry - below the low of today's bearish reversal bar close Stop loss - above the high of today's bearish reversal bar close Target - first profit taking zone at previous low/swing low (91.75), and possibly lower at 91.00 if swing low violated * Ignore the placement of the arrow indicating RSI convergence.
Short
by amanpaulbhogal
9