Stochastic-bearish-divergence
Best to short USDJPYDeep crab formed and Stoch showing clear diversion, best to short to earn quick pips.
Short EOD trade on Brent Crude at the $50 psychological levelPlease see annotated chart for details.
Short term short trade on EUR/GBPUsing divergence , Stochastic bearish this time, a temporary short position has lined up on the 4 hour time frame on EUR/GBP. Price has given an inside bar below resistance and the 1.618 Fibonacci extension level . Targets may be placed at previous support where price could go to.
Range bound based short set up on EUR/GBPEUR/GBP has been in a range since March 2015. Another retest of ~0.7400 at the top of the range and a high test close with oscillator bearish divergence offers a short position in the ranging pattern possibly reaching the bottom of the range at ~0.7000.
entry - below low of high test bar
stop loss - above high of high test bar
target - bottom of the range/support at ~0.7000
Stochastic bearish divergence on USD/CADAfter showing some resistance to the 1.3350 price area price signals bearish behaviour to follow. A high test bar offers an entry point and Stochastic bearish divergence brings confirmation for a potential drop in price.
entry - below low of high test bar
stop loss - above high of high test bar
target - 50 ema for 1:1 reward-risk profile or previous support level at 1.3030 for >1:1 reward-risk profile
USD/CHF Bearish divergence set upShort set up on USD/CHF by taking cue from:
- bearish engulfing bar
- resistance at ~1.0080
- Stochastic and RSI bearish divergence
entry - below low of bearish engulfing bar
stop loss - above high of bearish engulfing bar
target - previous support level
USD/SGD bearish divergenceUSD/SGD exhibits signs of bearish oscillator divergence as confirmed between price action and the Stochastic and RSI indicators. Price closes the day with a high test bar below a level where resistance is present.
entry - below low of high test bar
stop loss - above high of high test bar
target - previous low
USD/CAD Bearish Divergence Set UpA bit late in posting, but since my entry short hasn't triggered, I though I'd write a quick post. So price met resistance at the 1.3350 area and closed underneath as a high test bar. A short entry signal is pronounced with the accompaniment of oscillator divergence on the Stochastic and RSI indicator. As it is Friday, there is a lull in the markets as usually is, price may still fail to trigger an entry short and they way the price bar appears now price action may close as an inside bar for which a short entry can be revised.
entry - below low of high test bar or low of inside bar
stop loss - above high of high test bar
target - previous low/lower
Short KiwiReasons to short USD/NZD:
- high test bar close
- 20 ema rejection and close below
- resistance (~6700)
- downward trend line rejection (third bounce)
- 0.786 Fibonacci level rejection and close below
- Stochastic and RSI hidden bearish divergence
entry - below low of high test bar
stop loss - above high of high test bar
target - previous swing low or lower
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
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
