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Technical Analysis

EURGBP | Hidden Bearish DivergenceCurrently, EURGBP is in an uptrend, making new higher highs and higher lows as the price moves upward. However, a double top has formed, and the price has broken the recent low, indicating that the structure is beginning to shift into a downtrend. This suggests the market may soon start printing new lower highs (LH) and lower lows (LL). Additionally, on the 4-hour time frame, there is a hidden bearish divergence, further indicating a potential trend reversal into a downtrend. The combination of the double top formation and the hidden bearish divergence strengthens the likelihood that the trend will change, leading to the formation of new lower highs and lower lows. In summary: 1: Current Uptrend: EURGBP has been making higher highs and higher lows. 2: Double Top Formation: Suggests a potential reversal at a key resistance level. 3: Break of Recent Low: Indicates a shift towards a downtrend. 4: Hidden Bearish Divergence: On the 4-hour time frame, confirming the likelihood of a trend change. 5: Expectation: The trend may soon shift to a downtrend, with new lower highs and lower lows likely to form. These confirmations suggest that while the EURGBP has been in an uptrend, But rejected from its daily supply zone the recent developments point to a possible reversal into a downtrend. It is important to monitor these indicators closely and consider them in your analysis before making trading decisions.
Short
by awaisulabdeen
10
MarketBreakdown | EURUSD, EURJPY, GBPCAD, GBPNZD Here are the updates & outlook for multiple instruments in my watch list. 1️⃣ EURUSD daily time frame 🇪🇺🇺🇸 EURUSD looks heavily overbought after a recent strong bullish rally. The price started a correctional movement and broke a solid rising trend line. I think that the pair will continue the correction to lower levels. 2️⃣ EURJPY daily time frame 🇪🇺🇯🇵 I see a classic bearish accumulation pattern - a descending triangle formation. Bearish breakout of the neckline of the pattern and a daily candle close below that will be an important event that will most likely trigger a strong bearish reaction. Alternatively, a bullish breakout of a trend line can be a strong bullish signal 3️⃣GBPCAD daily time frame 🇬🇧🇨🇦 The price formed an inverted cup & handle pattern after a test of a key daily horizontal resistance. A breakout of the neckline of the pattern signifies a highly probable continuation of a retracement from the underlined read area. 4️⃣ GBPNZD daily time frame 🇬🇧🇳🇿 I see a confirmed breakout of a neckline of a huge descending triangle formation. The broken structure and a falling trend line compose a contracting supply zone now. I will expect a bearish movement from that to lower structure levels. Do you agree with my market breakdown? ❤️Please, support my work with like, thank you!❤️
Short
by VasilyTrader
4
Will Gold Prices Bounce Or Slide?The gold market is currently experiencing high volatility, making it essential to exercise caution. Key levels to watch: - Break above 2523: Potential buying opportunity - Break below 2518: Potential selling opportunity Traders are advised to closely monitor these levels and adjust their strategies accordingly. Stop-losses (SLs) are recommended to mitigate risk. Stay vigilant and adapt to market changes to capitalize on potential trading opportunities.
FOREXCOM:XAUUSD
by sabellaFX
2
BANK NIFTY INTRADAY ANALYSIS FOR 30 AUG 2024BUY ABOVE - 51260 SL - 5120 TARGETS - 51500,51620,51750 SELL BELOW - 51020 SL - 51120 TARGETS - 50890,50740,50600 NO TRADE ZONE - 51020 to 51260 Previous Day High - 51400 Previous Day Low - 51020 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:BANKNIFTY
by Jagadheesh_JP
NIFTY INTRADAY LEVELS FOR 30 AUG 2024BUY ABOVE - 25200 SL - 25130 TARGETS - 25260,25320,25400 SELL BELOW - 25130 SL - 25200 TARGETS - 25080,25030,24970 NO TRADE ZONE - 25130 to 25200 Previous Day High - 25200 Previous Day Low - 24970 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:NIFTY
by Jagadheesh_JP
Theories of Technical AnalysisTheories of Technical Analysis Dive deep into the intricacies of technical analysis with a close examination of five pivotal theories of technical analysis — Dow, Wyckoff, Gann, Elliott, and Merrill. Unravel their foundational concepts, applications, and histories to gain a comprehensive grasp of market dynamics with this article. Dow Theory The Dow Theory, attributed to Charles Dow, lays out foundational concepts that many traders consider the basic principles of technical analysis. It postulates that stock market activities unfold in specific, non-random patterns influenced by human psychology. These patterns manifest in three primary movements: long-term trends, counter-trends, and daily fluctuations. Dow emphasised that market prices integrate all existing and foreseeable data. Consequently, established trends tend to endure until clear signs indicate their reversal. How It's Used Traders utilise the Dow Theory to recognise and confirm market trends. By distinguishing between primary and secondary movements, they can identify the overarching trend and any counter-trends or corrections within it. This distinction aids in making informed trading decisions, such as entering or exiting trades at optimal points. By watching for definitive signals that indicate trend reversals, traders can position themselves advantageously for potential upcoming market shifts. How It Was Developed The genesis of the Dow Theory rests in the series of editorials penned by Charles Dow for The Wall Street Journal. Through his keen observations of market movements and trends, he devised certain principles that eventually coalesced into the Dow Theory. Though Dow himself never consolidated his ideas into a singular "theory," his successors refined his observations into the framework recognised today. Wyckoff Method The Wyckoff Method delves deep into the interplay between supply and demand in the market, underpinned by the assertion that assets move in cycles propelled by institutional investors or "smart money." The method suggests that by grasping the motives and behaviours of these major institutional actors, traders gain an edge, given that these entities notably shape market trends. How It's Used The Wyckoff Method prioritises the relationship between price and volume. Traders, armed with this method, keenly observe price movements in relation to volume surges or declines, seeking clues to the actions of institutional players. By recognising accumulation (where "smart money" accumulates assets) and distribution (where assets are offloaded) phases, traders can discern potential future price directions. The method employs a systematic approach: defining current market trends, anticipating future movements by tracking institutional behaviour, and finally, establishing positions in harmony with these insights. Specific chart patterns, like springs or upthrusts, are signals used to validate the ongoing phase. How It Was Developed Richard D. Wyckoff, recognising the disadvantage at which retail traders often found themselves, embarked on a journey to level the playing field. He rigorously studied the strategies employed by the most successful traders of his time. Merging these findings with his own market observations, Wyckoff birthed a method that sought to illuminate the operations of the market's most influential players. Gann Theory The Gann Theory is an intricate system of technical analysis developed by W.D. Gann. It’s grounded in the belief that price and time are intrinsically interwoven, and this relationship can be harnessed to predict future price movements. Gann maintained that markets move in consistent patterns and rhythms, and by understanding these, traders can foretell potential price changes. How It's Used Traders employing the Gann Theory use a set of bespoke tools to decipher market behaviour. Among the most notable are the Gann angles, which are drawn between a significant bottom and top (or vice versa) at various predetermined angles. The Square of Nine, another Gann tool, is a root square that offers a horizontal and vertical axis, assisting traders in identifying price movements and potential turning points. Lastly, the Gann Fan is used to foresee areas of support and resistance by marking out angles that depict possible future price movements. By using these tools, traders attempt to pinpoint where the price might change direction, offering them strategic entry and exit points. You can find all of these tools and more in FXOpen’s free TickTrader platform. Head over there to get started in minutes. How It Was Developed W.D. Gann integrated ancient mathematics, geometry, and astrology to decode market movements. This synthesis resulted in the Gann Theory, a set of tools and techniques. His innovative approach significantly influenced technical analysis. His meticulous research and unique approach have rendered his contributions both legendary and influential in the realm of technical analysis. Elliott Wave Theory The Elliott Wave Theory, introduced by Ralph Nelson Elliott, posits that market movements manifest in specific, predictable wave patterns. Central to this framework is the belief that markets progress in a five-wave sequence and retract in a three-wave sequence, totalling an eight-wave cycle. This sequence is driven by collective investor psychology, oscillating between optimism and pessimism. How It's Used In application, traders deploy the Elliott Wave Theory to both decipher and forecast market trajectories. By discerning where they are within a particular wave sequence, they can anticipate the likely next move of the market. For instance, recognising the commencement of a third wave — typically the most robust and longest — can signal a strong trading opportunity. Conversely, identifying the start of a corrective wave can guide traders to defensive positions. How It Was Developed In the 1930s, Ralph Nelson Elliott identified recurring stock market patterns, suggesting predictability rather than randomness. He believed these patterns were fractal—repetitive at different scales. His research led to the Elliott Wave Principle, which provides a lens to understand and forecast market behaviour based on these wave patterns. Merrill Patterns Merrill Patterns, formulated by Arthur A. Merrill, are a collection of geometric formations discerned within stock market charts. These patterns reflect the collective psyche of market participants and underscore the principle that markets evolve in discernible trends. Merrill meticulously identified 32 W- and M-shape patterns, such as wedges, triangles, and head-and-shoulders formations, each harbouring unique predictive capacities about future price movements. How It's Used Traders leverage Merrill Patterns to gain insights into potential market shifts. By recognising the formation of a specific pattern, a trader can anticipate possible trend reversals or continuations. For instance, the emergence of a head-and-shoulders pattern can often indicate a forthcoming downward market reversal. On the other hand, a triangle formation typically signals the continuation of a prevailing trend. These patterns serve as visual cues, guiding traders in establishing their market positions. How It Was Developed Arthur Merrill extensively studied stock charts for decades, identifying recurring predictive patterns. He consolidated these findings into a compilation of patterns with defined rules. His work, "Behavior of Prices on Wall Street," systematically presents these insights, marking a significant contribution to technical analysis. Final Thoughts In understanding what technical analysis is in the stock market, these five theories are an ideal place to start. Each offers powerful, time-tested insights that provide a much deeper understanding of market dynamics than mere indicators or candlestick patterns. However, these theories are also used in other markets, including forex and commodities. To harness the power of these insights practically, consider opening an FXOpen account for a seamless trading experience. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
SWING IDEA - WELSPUN LIVING Welspun Living , a leading company in the home textiles sector, is presenting a compelling swing trading opportunity based on several key technical indicators. Reasons are listed below : Head and Shoulder Pattern Breakout : The price has broken out of a head and shoulder pattern, indicating a bullish reversal and potential for further upward movement. 170 Resistance Zone Breakout : The 170 level was a significant resistance zone. The price has broken out above this level and is sustaining, indicating strong bullish momentum. Bullish Marubozu Candle with a Strong Close : The recent formation of a bullish marubozu candle with a strong close signifies strong buying pressure and suggests potential for continued upward movement. Breaking 3+ Years of Consolidation : The stock is breaking out of a long consolidation phase that lasted over three years, signaling the start of a new bullish trend. Gradual Increase in Volumes : A noticeable increase in trading volumes confirms the strength of the price move and indicates growing investor interest. Trading Above 50 and 200 EMA on Weekly Timeframe : The stock is finding support at both the 50-week and 200-week exponential moving averages (EMA), reinforcing the overall bullish sentiment and providing strong support levels. Trading at All-Time High : The stock is trading at its all-time high, suggesting strong market confidence and potential for further gains. Target - 200 // 250 Stoploss - weekly close below 145 DISCLAIMER - Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Any trading in securities or other investments involves a risk of substantial losses. The practice of "Day Trading" involves particularly high risks and can cause you to lose substantial sums of money. Before undertaking any trading program, you should consult a qualified financial professional. Please consider carefully whether such trading is suitable for you in light of your financial condition and ability to bear financial risks. Under no circumstances shall we be liable for any loss or damage you or anyone else incurs as a result of any trading or investment activity that you or anyone else engages in based on any information or material you receive through TradingView or our services. @visionary.growth.insights
NSE:WELSPUNLIVLong
by Visionary_Growth_Insights
8
BANK NIFTY INTRADAY LEVELS FOR 28/08/2024BUY ABOVE - 51260 SL - 51080 TARGETS - 51500,51620,51750 SELL BELOW - 51080 SL - 51260 TARGETS - 50890,50740,50600 NO TRADE ZONE - 51080 to 51260 Previous Day High - 51260 Previous Day Low - 51080 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:BANKNIFTY
by Jagadheesh_JP
NIFTY INTRADAY ANALYSIS FOR 29/08/2024BUY ABOVE - 25080 SL - 25030 TARGETS - 25130,25200,25260 SELL BELOW - 25030 SL - 25080 TARGETS - 24970,24900,24850 NO TRADE ZONE - 25030 to 25080 Previous Day High - 25130 Previous Day Low - 24970 Based on price action major support & resistance's are here, the red lines acts as resistances, the green lines acts as supports. If the price breaks the support/resistance, it will move to the next support/resistance line. White lines indicates previous day high & low, high acts as a resistance & low acts as a support for next day. Trendlines are also significant to price action. If the price is above/below the trendlines, can expect an UP/DOWN with aggressive move. Please NOTE: this levels are for intraday trading only. Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:NIFTY
by Jagadheesh_JP