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Rsi-convergence

#AUD/USD #bullish precursorAUD/USD has formed new structure recently showing signs of a trend reversal. Whether this continues to hold longer or not is for price action to reveal. As for now, a potential bullish continuation is brewing after what seems like a shall retracement. The close of price action by end of day as a low test bar above ~0.7250, where price has found support, will further confirm potential bullish intentions in price. Other than that the reasons for going long are: rejection of 50 ema; a rising 50 ema; rejection and close above 0.382 Fibonacci level; and convergence on Stochastic and RSI indicators. entry - above high of low test bar stop loss - below low of low test bar target - at or above previous high/resistance area around 0.7400
Long
by amanpaulbhogal
Short again on AUD/USDAnother short set up on AUDUSD since downward momentum on the previous set up (idea linked) failed is on offer. The present set up comes after a deeper pull back, organic in a sense, into the 50 ema which also lines up with a previous level of support (~0.7250), now acting as resistance, and the 0.618 FIbonacci level. Price closed as a high test bar. Oscillator convergence is visible. entry - below low of high test bar stop loss - above high of high test bar target - at or below previous low
Short
by amanpaulbhogal
A sell-off may continue on the S&P500, Nasdaq 100 and UK100On the S&P 500 and NASDAQ100 indices, closing as a high test bar in the resistance zone, and a bearish engulfing bar on the FTSE100 (UK100) stock index, a sell setup is in order suggesting potential bearish continuation on these three (CFD) indices, following the recent sell off on major indices. 1. S&P 500 The rejection/resistance zone on the S&P 500 comprises the following: - retest of the 50 ema; - retest of ~2011; and - 50% retracement, and close below. Oscillator convergence, as shown on the chart, is seen as an additional argument to enter a potential continuation of seller based momentum in this index. entry - below high test bar stop loss - above high bar target - previous low or lower 2. NAS100 Since the major global indices demonstrate price behaviour correlation, an almost exact set up as on the S&P 500 is also forming on the NAS100. entry - below high test bar stop loss - above high test bar target - previous low or lower 3. UK100 The FTSE100 is in a very clear down trending environment. Three key reasons of a potential continued price decline are: - close as a bearish engulfing bar; - a strong bout of resistance at ~6250; and - rejection of the 20 ema. entry - below low of bearish enguling bar stop loss - above high of bearish engulfing bar target - at previous low or lower
FX:SPX500Short
by amanpaulbhogal
3
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
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