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Trading Countertrend with MultitimeframeanalysisHi guys, today I want to show you how I trade countertrend, piecing multiple timeframes together. Keep in mind though, that generally speaking the sentence 'the trend is your friend' is always true. However when it comes to specific timeframes one can make use of particular price movements. Such as in this case. As you can see the EURUSD recently had a strong bullish run after forming a tripple bottom at support. The bullish run occured with little to no pullbacks on the monthly, this is the first sign for me that this pair is overextended and in need of a pullback. As most of you will know, price 'breathes' meaning it goes up and down in a waveform. Furthermore price has begun decelerating at resistance. Last month closed as a doji, showing uncertainty in the market, and this month might be closing as a hightest. Keep in mind that this is the monthly timeframe, price action patterns and signals take way longer to form, thus have mostly way more significance, than lets say the hour chart. Going further on the weekly chart one can see how significant the resistance/support zone at which price is sitting has been in the past. 5 Rejections have occured, most of them pretty violent. Furthermore we can see that price has really moved with little to no pullbacks and is now chopping at the resistance zone. What does this mean for us as traders? Mostly choppiness is just uncertainty in a market. To make money in this profession, we have to act as smart traders. Smart traders dont just trade when they see something closing in on a potential reversal zone, they build a portfolio for each trade and act upon their trading plan. So far what do we have? - A overextended bullish run - Price is sitting at resistance - Price has formed a doji and might be forming a hightest on the monthly - Price is also sitting in the 0.5 fib monthly level (treat fib levels like a zone) - Choppiness on the weekly For me personally this isn't enough to justify a trade, so lets zoom in on the daily chart. I used the same levels and what do we see? Massive bearish MACD divergence and a h&s pattern that formed, with a slanting neckline. Now this doesnt mean that this pair will drop with 100% uncertainty, however it gives us more confluence to put into our tradingportfolio. So adding to the confluence mentioned above, we now have: - A h&s pattern on the daily - Daily bearish MACD divergence To pinpoint wether price action is going to change, i also like to look at the 4h chart: The 4hour chart confirms what we've seen on the daily. A h&s pattern with massive macd divergence. However it also tells us that the neckline of the h&s pattern still holds strong. The first indication of a potential trendchange would be a lower high at the 4h 50 EMA. However I wouldn't enter the trade until the neckline is broken and retested. This is how I like to put together my trades. Ofcourse the are short trading opportunities which are not showing on the monthly or weekly, however it is always good to build a portfolio for each trade, look at it from different timeframes and justify your actions with confluence. I will keep you updated and should price move in the right direction I will ofcourse also show my PT and stop placement. Until then have a good one!
Short
by Schlabberlatz
EURGBP SHORT OPPORTUNITYEURGBP has been climbing to the upside for some time now as the EURO gained significant strength across the pairs. However now we are starting to see a move lower in the EURO as exhaustion enters the market. GBPUSD held at significant key support and bounced showing it may finally be heading for the 1.3300 handle. Looking at this pair we can clearly see from the higher timeframes price maybe retracing on the weekly & daily timeframes. The 4hr timeframe changed cycles and now we have our opportunity on the 1hr as price held at the moving averages (dynamic resistance). Looking for price to move lower.
Short
by ColmoreFX
CADJPY - Sell Limit Pending Good morning friends! As you can see from the title, during the night my sell limit order was taken on this pair. In the picture you can see an H4 graph and a Daily one, respectively pro trend and counter trend. Confusing, isn't it? Now I'm going to explain the organization of my trade. As usual, I start from a Daily chart in order to have a complete analysis. There, I can see a correction (in an up trend) which I reckon we can't call it this way anymore because it's too long, and breaks an important support (as I said yesterday in the EURGBP analysis, check it out, it's really interesting); so I go checking the H4, to use my "powerful magnifying glass" (lol) to see what's going on. There, I see an uptrend, but attention, thanks to the power of multi-timeframe given to me, I know that could be a trap, because on the Daily chart we should have found a resistance, and, if price wanted to invert (I think it's just happening, maybe with a head and shoulders pattern formation), the bullish trend wouldn't have gone much further. So, I set a Sell Limit Order right on that resistance, which was taken during the night (12 AM in Italy). Initially that seemed weak, because prices seem like they wanted to break that resistance, but now, they're slowing turning back. As stop I used the left shoulder, because if prices break it, maybe there's some more power for un uptrend. As target I used the bottom on the Daily chart, I don't want to exaggerate, if needed I will re enter the market. Let me know what you think in the comments below :-)
Short
by MartinaAndreaProvenzano
EURGBP - Daily Long, H4 short. Panic?Good morning Guys :-) Today we analyzed the pair EURGBP, in a very precise way, in fact the pair gave us many ideas. In fact, we started from a daily graph, which is in a very strong uptrend, since it is straight and doesn't have many zig-zags. To the questione "Long or Short?", the answer was 100% "Long", both straight away, or wanting for a correction, but long anyway. Since the daily chart have a really straight trend, I said "let's go down on H4", and here an illumination! As you can see on the graph, H4 says, even though the daily TF is bearish, that maybe the strength is kinda vanish, since a support, which worked many times, didn't this one, so that price could go down. I immediate saw the Head and Shoulders formation (I don't really care about the neckline, I care the most about the inversion that this could show us). So I thought "Well, a bullish trend, but supports are broken this easily? I don't like it". In fact, H4 is inverting. If we go down on H1, we can see that it already did it (inversion, I mean). What about now? Now this bearish trend on H1 is asking permission to the H4 to go on. And H4, we are with you! In fact, if the highlighted zone (where you can see the entry point) keeps price down*, I take advantage to go short, first of all up to the neckline, and then, up to the next obstacle on the daily chart (next one will be October highs). If this obstacle will stop the bearish move, so the daily chart will say "no" to the bearish move, and we will close the position, if not, we will go down with the Daily chart, having taken advantage of a bearish move that wasn't even started on the daily chart. Cool, isn't it? *"How can I know if H4 keeps prices down?" you're asking yourself, aren't you? Well, I can see it through minor timeframe, such as H1 or 15 minutes, waiting for a double top. Let me know what you think about it buy commenting and liking this idea. Also, prices could normally continue the daily bullish move! Mine is just an idea, a project, to which I stay faithful up to a new breakout appears, not because I just believe in my ideas, but because it's really important to stay consistent and following our plans to succeed in trading!
Short
by MartinaAndreaProvenzano
BUYERS definitely in market.The pair that that is always fair! UJ weekly showing multiple confluences for rejection zone at around 109 level. If Sunday DAILY closes bullish engulfing we could definitely see lift off of this pair. But downtrend is still currently valid on higher Time Frames so be careful in swinging in any direction. My bias is just visuals of momentum switch on lower Time Frames on this pair. Higher Time Frames do take more time to show movement so updates on them will be weekly. Setups off this pair will be patient from my end.
by draked11
Spot The Trend & Trade It On Lower Time FramesOne of the strongest setups are the ones that are being formed by the dual time frame momentum. By using multiple time frames you will be able to create a high probability setup. Key rule is: Large/High time frame for trend and Small/Low time frame for your entry. Personally I mostly I like to hold short term positions, so I use the daily time frame for the trend and then the 4 hour for my entry. For the purpose of this educational post I will use the weekly time frame so that we can spot the long term trend and over the course of the next 2-3 months I will update this post and you will see how very well this strategy works (for the purpose of this guide I will assume it has broken the upper range, so it isn't a trading advice or prediction of what will happen) Part 1 Spot The Trend (I use the weekly time frame, but you can apply the same principles to the daily time frame) Currently the weekly time frame is trading in a nice triangle that is narrowing. At the moment it isn't possible to spot a clear trend due to this. So we have some patience and we will wait till the price has broken out of the triangle. Now it's important to remember that a range is only considered to be broken when the candle has closed outside of it. Since we now use the weekly candle we wait till the market close on Friday, if you use the daily time frame you wait till the daily close of the market which will close the current candle and start a new one. Lets jump a bit forward in time and assume the upper range has broken when the weekly candle closed. Now we know that the weekly time frame will show a nice wave up as is often the case with a range break out. So there we have had, we had some patience, we waited till the weekly would close outside of the range and now we know that the weekly time frame trend will be up the next weeks. Now this doesn't mean straight away that on Monday the next trading day the price will jump up. Maybe the lower time frame will have a correction first because it just had a strong wave up. An indication of this on the weekly time frame can be the Stoch Rsi, Rsi or just Stoch indicator. If the price has broken out of the range but one of these indicators is already in the overbought or oversold area a retracement can be very likely. To confirm this we take a look at the lower time frames, because we want to make sure that your buy position wont drown first be a retracement on the 4 hour or daily time frame before going back up and following the weekly trend. This is the next step. Find Your Entry To avoid getting caught up in a lower time frame is very simple. You make sure that the lower time frame is pointing up in the same direction as the higher time frame. For example I use the daily for the trend and then I wait till the 4 hour points in the same direction as the daily trend and I have my entry. In our example it goes the same. Except now we use the daily and 4 hour time frames for our entry. Why not only the daily? If the daily points like the weekly time frame, you can still get caught up in the 4 hour retracement. Why not skip the daily and jump to the 4 hour Well if the 4 hour points up like the weekly time frame in our example,the daily time frame can still point down. So basically you're trading a retracement of a retracement. Which can make your position go up first based on the 4 hour, but once that retracement is done it will go down first till the retracement on the daily time frame is done. To avoid getting caught up in all these retracements we wait till the daily and 4 hour time frames will both point in the same direction as the weekly. Which will be up in our example since we assumed that the upper range has been broken. The following situation can indicate that the daily or 4 hour time frame are going up: Range has been broken to the upside Price has touched the lower range and the Stoch Rsi, Rsi, Stoch indicator made a bullish cross over
Education
by JoshFX1
2
GOLD / D1-W1-M1 : MultiTimeFrame Analysis with Elliott+SinewaveTook me quite some time to build this up but the result shows a very clean sceanrio here ! Everything tends to correspond between each different timeframe and so the forecast is even more likely to occur. It shows that on the biggest timeframe, gold has made it's 5 wave impulse and is now retracing in 2 impulses . The first have been completed and we clearly see it confirmed by multiple timeframe sinewave signals. We're now working on the corrective wave of this rectacement ( the A to B wave ) . Which normally plots as ZigZag and tends to be the case here. Looks like we've made the first impulse of our sub ZigZag... working on the corrective wave (that appears to be a barrier triangle on daily chart). The next move should be a 3 wave bullish impulse reaching out to 100-127% extension of the previous wave . Completing this will give us our B point of major count that we will the sell for the second corrective wave of the monthly corrective count. It can seem messy... but hold on, zoom in and take the time to read ! You'll have much clearer sight of what would be about to come ;) Hope this idea will inspire some of you ! I'm pretty new to TradingView so I'ld appreciate any like/follow if you feel like it deserve it ;) You can check my indicators via my TradingView's Profile : @PRO_Indicators
FX_IDC:XAUUSDEducation
by PRO_Indicators
4
Possible Long Setup on USDCADHi guys, lately CAD pairs have been very weak, on this particular pair we can see price is testing a key support area that was relevant on the daily timeframe (left-hand side). This means it could still be effective for price's movements and we can then search for long opportunities down on lower timeframes, such as 4hr. In addition to that you can see the RSI is in oversold condition, both in the daily and in 4hr charts. As we go down on the 4hr timeframe there's a huge pin signaling buying pressure at this precise level. Now, this doesn't mean we can now long but it could represent an early stage of a reversal pattern, that could be confirmed by the next candles. I'll keep you updated in case of an entry. If you have questions or if you want to share your ideas, feel free to comment below. Otherwise, see you in the next chart!
Long
by Roker1
2
$amt negative divergences and descending trianglehigher time frame is showing negative divergence in rsi intermediate time frame is showing distribution and no conviction in buying pressure and forming a descending triangle further supporting higher time frame alignment lower time frame is showing a downtrend breaking below support and retesting on pullback will look to enter on 130.2x area for a move down to 129.3x area as first target and break lower to the 125.18 which coincides with the higher timeframe
NYSE:AMTShort
by inco1
$BABA breakout lookout-higher time frame shows defined uptrend and significant trend strength -intermediate time frame shows strong uptrend with rising moving averages with price reaching resistance area of 125.5x area -looking to price to test demand line and pullback to 125.56-.57 area which is the .236 retracement level on the shorter timeframe and demand line area -rsi and obv aligned with price action -will also be watching for a trendline break to the 125.0x area on the intermediate time frame which is the .382 retracement level on the shortertime frame -if trendline is broken- it will signal trend weakening after third test and breakdown of the trendline and be cautious in initiating a position -looking to retest test the resistance area of 125.5x on the fourth retest and breakout to first profit target at 126.51 (.618 extension level)
NYSE:BABALong
by inco1
NZDUSD Buy IdeaPrice is currently trading inside this H4 channel and it is near the bottom of it. I want to see one more push down, towards the range marked on the chart and bullish divergence being created on the M15 chart. Ideally we will also get a false break on the bottom trend line of the channel. Once that happens, look for the most recent trend line's breakout up (m15) and go long. Protection should be placed below last low, and final target would be the opposite trend line of the channel.
Long
by VladimirRibakov
Head & Shoulders on NZDJPY!!Hi guys, here it's an Head&Shoulders pattern on NZDJPY. I'm very interested on this cross because i think we have a nice rally ahead. On the daily price has formed 3 consecutive candles with buying pressure and we also have a divergence on the RSI. I patiently waited for a break of structure as a confirmation and that happened today. Now there are two levels where i'm going to pay attention to: previous resistance and previous support. If price will give us a weakness sign i will be buying this. If you have any question or you want to share your thoughts about this, feel free to comment below. Otherwise, see you in the next chart!
Long
by Roker1
Strong support + Lower low (Multiple TF analysis) On this pair, price has struggled to break through daily support (110.757) which I am assuming could lead to a strong bullish reaction. If we look at the daily timeframe for this pair, a lower low has been created in the current downtrend which also suggests price could now be ready to rise. I will be trading this up to the major daily trend line. We may have a few fib retracements which I will be looking for opportunities to re-enter the trade to gain more pips.
Long
by vj20_fx
Potential AUDUSD Long Reentry Possibility?!Hello Traders, AUDUSD is in a big triangle pattern in the daily chart, as you can see in the first chart. It was flirting with the last significant breakout highs at around 0.7536. Where also the 200-day moving average comes across. The main idea is now that the market should at least bounce from its current daily levels. Therefore, we waited last week for a confirmation in the 1-hour chart. As a matter of fact, the 1-hour chart gave as an ending diagonal. With a breakout and a retest of this broken falling trend line, as you can see in the second chart, we decided to take a long position at 0.7555 with a stop loss of 0.75688 and an initial target of the last daily highs at 0.7715. It is an approx. 5:1 risk to reward ratio, which is pretty good. The trade is currently with +70 Pips in profit. But we will wait now for another consolidation pattern, like projected in the second chart. With a break again of its potential consolidation, we will take another long position to scale into our existing position. In case of a scale in we will put our stop-loss from the first position to break even. We will keep you updated. We wish you a successful start in this upcoming week and please do use a tested strategy, this is just our opinion and we don't share OUR exact multi-timeframe strategy here. This will just give a sense of market direction. Cheers
Long
by secrets2trade