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USD (US Dollar)

Breakout Of A Triangle On USDMXNHello traders, In this analysis we will talk about a triangle pattern. Those who are familiar with them, will know that these are one of the most popular patterns. The reason why they are so interesting is because while they are unfolding, momentum is decreasing, volume is low, therefore everyone wants to catch the breakout, because we know that sooner or later every correction comes to an end. And very often moves out of a triangle are sharp and fast! On USDMXN we see a break out of a triangle that can still continue towards the target. But if you dig deeper into the Elliott Wave triangles then you will know that a new reversal may show up in a few weeks, as this breakdown can be a final leg withing a higher degree of a trend as I described below. However, not all of the triangles are easy to be recognized, and that is where Elliott Wave shows its strength. Theory suggests that triangle form in five waves, A-B-C-D-E , so if you know the wave principle and you see five sub-waves, then you can already be one step ahead of others because it indicates that potential breakout is coming. Another thing that is very important is that triangle occurs within an ongoing uptrend, so you know in which direction the breakout is most likely going to happen. Also, it is good to know in which position of an Elliott Wave cycle do triangles occur. It can occur in wave 4 of an impulsive structure, wave B, and in a wave X. By understanding the Elliott Wave theory you know that once a triangle is complete the market is very often going to make a final move within a higher degree of a trend. So, not only that you spot the direction of a breakout but also understand that after that breakout, the market can be in final part of a higher degree structure. Trade well!
Education
by ew-forecast
1
What Are Fibonacci Retracements and Fibonacci Ratios?How Fibonacci Ratios Work Before we can understand why these ratios were chosen, let's review the Fibonacci number series. The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Each term in this sequence is simply the sum of the two preceding terms, and the sequence continues infinitely. One of the remarkable characteristics of this numerical sequence is that each number is approximately 1.618 times greater than the preceding number. This common relationship between every number in the series is the foundation of the ratios used by technical traders to determine retracement levels. The key Fibonacci ratio of 61.8% is found by dividing one number in the series by the number that follows it. For example, 21 divided by 34 equals 0.6176, and 55 divided by 89 equals about 0.61798. The 38.2% ratio is discovered by dividing a number in the series by the number located two spots to the right. For instance, 55 divided by 144 equals approximately 0.38194. The 23.6% ratio is found by dividing one number in the series by the number that is three places to the right. For example, 8 divided by 34 equals about 0.23529. Fibonacci Retracement and Predicting Stock Prices For unknown reasons, these Fibonacci ratios seem to play a role in the stock market, just as they do in nature. Technical traders attempt to use them to determine critical points where an asset's price momentum is likely to reverse. Fibonacci retracements are the most widely used of all the Fibonacci trading tools. That is partly because of their relative simplicity and partly due to their applicability to almost any trading instrument. They can be used to draw support lines, identify resistance levels, place stop-loss orders, and set target prices. Fibonacci ratios can even act as a primary mechanism in a countertrend trading strategy. Fibonacci retracement levels are horizontal lines that indicate the possible locations of support and resistance levels. Each level is associated with one of the above ratios or percentages. It shows how much of a prior move the price has retraced. The direction of the previous trend is likely to continue. However, the price of the asset usually retraces to one of the ratios listed above before that happens. The following chart illustrates how a Fibonacci retracement appears. Most modern trading platforms contain a tool that automatically draws in the horizontal lines. Notice how the price changes direction as it approaches the support and resistance levels. Fibonacci Retracement Pros and Cons Despite the popularity of Fibonacci retracements, the tools have some conceptual and technical disadvantages that traders should be aware of when using them. The use of the Fibonacci retracement is subjective. Traders may use this technical indicator in different ways. Those traders who make profits using Fibonacci retracement verify its effectiveness. At the same time, those who lose money say it is unreliable. Others argue that technical analysis is a case of a self-fulfilling prophecy. If traders are all watching and using the same Fibonacci ratios or other technical indicators, the price action may reflect that fact. The underlying principle of any Fibonacci tool is a numerical anomaly that is not grounded in any logical proof. The ratios, integers, sequences, and formulas derived from the Fibonacci sequence are only the product of a mathematical process. That does not make Fibonacci trading inherently unreliable. However, it can be uncomfortable for traders who want to understand the rationale behind a strategy. Furthermore, a Fibonacci retracement strategy can only point to possible corrections, reversals, and countertrend bounces. This system struggles to confirm any other indicators and doesn't provide easily identifiable strong or weak signals. The Bottom Line Fibonacci trading tools suffer from the same problems as other universal trading strategies, such as the Elliott Wave theory. That said, many traders find success using Fibonacci ratios and retracements to place transactions within long-term price trends. Fibonacci retracement can become even more powerful when used in conjunction with other indicators or technical signals. Investopedia Academy's Technical Analysis course covers these indicators as well as how to transform patterns into actionable trading plans.
Education
by Saeed966
6
Ascending ChannelKEY TAKEAWAYS An ascending channel is used in technical analysis to show an uptrend in a security’s price. It is formed from two positive sloping trend lines drawn above and below a price series depicting resistance and support levels, respectively. Channels are used commonly in technical analysis to confirm trends and identify breakouts and reversals. Understanding Ascending Channels Within an ascending channel, price does not always remain entirely contained within the pattern’s parallel lines but instead shows areas of support and resistance that traders can use to set stop-loss orders and profit targets. A breakout above an ascending channel can signal a continuation of the move higher, while a breakdown below an ascending channel can indicate a possible trend change. Ascending channels show a clearly defined uptrend. Traders can swing trade between the pattern’s support and resistance levels or trade in the direction of a breakout or breakdown. Trading the Ascending Channel Support and Resistance: Traders could open a long position when a stock's price reaches the ascending channel’s lower trend line and exit the trade when price nears the upper channel line. A stop-loss order should be placed slightly below the lower trend line to prevent losses if the security’s price abruptly reverses. Traders who use this strategy should ensure there is enough distance between the pattern’s parallel lines to set an adequate risk/reward ratio. For example, if a trader places a $5 stop, the width of the ascending channel should be a minimum $10 to allow for a 1:2 risk/reward ratio. Breakouts: Traders could buy a stock when its price breaks above the upper channel line of an ascending channel. It is prudent to use other technical indicators to confirm the breakout. For example, traders could require that a significant increase in volume accompanies the breakout and that there is no overhead resistance on higher time frame charts. Breakdowns: Before traders take a short position when price breaks below the lower channel line of an ascending channel, they should look for other signs that show weakness in the pattern. Price failing to reach the upper trend line frequently is one such warning sign. Traders should also look for negative divergence between a popular indicator, such as the relative strength index (RSI), and price. For instance, if a stock’s price is making higher highs within the ascending channel, but the indicator is making lower highs, this suggests upward momentum is waning. Envelope Channels Envelope channels are another popular channel formation that can incorporate both descending and ascending channel patterns. Envelope channels are typically used to chart and analyze a security’s price movement over a longer period of time. Trend lines can be based on moving averages or highs and lows over specified intervals. Envelope channels can use similar trading strategies to both descending and ascending channels. This analysis will typically be based on a stock price movement over an extended period of time while ascending and descending channels can be beneficial for charting a security’s price immediately after a reversal.
Education
by Saeed966
EURUSD: Long Term Perspective & Trend Analysis hey guys, I know that many of you are expecting a coming bearish movement on a daily on EURUSD. analyzing a weekly time frame though, I want to warn you that the pair has still much space for a bullish continuation. on a weekly, the price is clearly trading in a global bearish trend. spring's covid bullish rally made the market set a higher low and triggered a bullish rally, and it looks like a long term goal for buyers is 1.21 - 1.25 wide supply cluster. this zone is based on 2008'th, 2010'th, 2012'th lows and 2018'th high. in my view, a strong weekly bearish movement will most likely start from that area. however, what makes me extremely cautious is the recent higher low. usually, it is the first strong signal of a coming trend change. if the above-mentioned zone is broken buy buyers, It will signify a long term bearish trend violation and start of a new long term bullish trend. as always we can only speculate about the probabilities of both events. but clearly decision point is close.
Education
by VasilyTrader
10
USDCAD- 07/08/2020 "The EMAs Trading System"Hello Traders, I expect the price to push to the support price level or with more correct words I expect the price to push to the red Ema. Nevertheless, the EMAs generally created by the price so its not likely the price to reach the red ema so quickly, but you get my tutorial that I want to do through this picture. The charts illustrates what you can see, different approaches are welcome. It doesn't really matter. It's different a trader who executes consistently profitable trades between the trader who do a forecast. I appreciate the feedback and the reason who I write all these, are for see opinions about who agree and who disagree. Thank You.
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by IVpartners
GBPUSD 1:2 RR - Whats your edge in the market?Hi, I have just recorded this video to demonstrate the effectiveness and ease to find your edge with our strategy. Any funded traders, attacking a challenge - you need to watch this too! A 1:2 RR requires a 33% win rate and above, here you can see 100%+ gains YTD risking just 2% per trade on your account. Simple trade with no bias and no emotion to any specific trade outcome - simply follow the strategy - trading can be mechanical, simple and emotionless. I hope this video helps demonstrate how we trade and how we ensure we have an edge in the markets. Drop us a DM, let us know what you think and if you have any questions. Regards Darren
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by pow_removetheguesswork
1
A simple flow indicatorAn alternative way of assessing currency flow is the ratio between the ETFs of each currency. For example, the EZU that gives exposure to a developed market countries using the Euro currency, divided by IVV that gives exposure to large, established U.S. companies. The direction of this ratio shows us whether companies in one country (or region) are growing faster than the other. The greater the growth of companies, the greater the country growth and productivity, which creates a virtuous cycle and currency appreciation.
Education
by blacksheepforex
Simple rules to understand Supports and Resistances behaviour The idea of this post is to use this current scenario to provide an idea of how to work with clear Support and Resistances zones. a) LOOK AT THE PAST: What we mean by this is to look for zones that you can define as reversal areas (support/resistance), this must be Evident if it is not then you should not be paying attention to that chart b) Once you have found a situation in the past that is clear enough, you can think that similarities may happen to the current scenario, For example, we would say something like: The price will reverse towards a similar level as it happened on the past c) Be ready to be wrong: We don't know what the price is going to do precisely, BUT we can assume two situations, either will break a level, or it will reverse on a level. Let's take the previous support zone as an example. We had an evident support zone, and the price dint reversed there, BUT the price stop for a while. so we can make a rule like this: -IF the price breaks a clear support/resistance zone; first, it will tend to stop there and make a sideways movement for a while before continuing -IF the price reversed on a level, I should see similarities to previous situations, and I can use it as models to follow and wait for triggers or signals that I saw worked before d)LAST RULE: The price moves between specific Support and Resistance zones following the previous 2 ideas about breaking a level or reversing on a level / Take a look how the price broke the last zone support, making a sideways movement first. After that, the bearish movement continued and now has reached the next support zone, there we should think again that both scenarios can happen, and just react to the more evident one.
Education
by ThinkingAntsOk
3
EURUSD: Year's High AHEAD!!! Key Levels & Scenarios EURUSD is approaching a key daily structure resistance. 1.15 is year's high, short rally from that level was just crazy in march. we don't know how the market will react this time, so we must be prepared for both scenarios: in case of a bullish violation of the underlined resistance (daily higher high higher close) the pair will most likely keep growing. next midterm resistances will be: 1.155 1.160 if the structure will be respected (some reversal formation on lower timeframes) the market may retrace. closest midterm supports will be: 1.137 1.130 of course, bias right now is bullish, but it is too late to jump in. let's patiently wait and see whats gonna happen.
Education
by VasilyTrader
18
When will we move out of this zone!Bitcoin has been rather boring in the past few weeks, just hanging around this consolidation zone. I have my eyes on this level off fibs, we have a bullish engulfing and now an indecision candle at the 38 I would like to see it test the supply zone and give us a decent break out of this consolidation zone Note : Supply zones are determined buy the last Green candle before a big push down Demand zones are determined by the last Red candle before a big move up. Consolidation zones are determined by an area after a move up or down where the price moves around in for a period of time. XBT 4hr
BITMEX:XBTEducation
by CryptoTennille
GOLD (XAUUSD) Structure Analysis & Thoughts gold is just unstoppable. the price is growing like crazy this week. if you missed this movement and plan to jump in, it is too late and very risky atm. the price is relatively close to our next potential reversal area 1823 - 1833. this area is based on a resistance line of a rising channel and fib.extension confluence of the last two major daily impulses. attention! I don't say that we should just blindly short from that area. always look for a confirmation on a lower time frame to trade against the trend. moreover, if you want to catch a bull rally, a pullback from the above-mentioned area may let you buy on a discount from the support of the channel. apply these structure levels based on your strategy and good luck!
FX:XAUUSDEducation
by VasilyTrader
16