Here is a long trade I have taken on EURAUD but unfortunately did not manage to post to trading view before my entry. I will cover the basic analysis for entering this trade below:
- Descending Wedge Pattern
- Price is Squeezing
- Rejections of 1.57/1.57150 support zone
- Anticipation of the wedge breakout
- Gold price...
I have recently had a lot of success trading the weekend market gaps forming on a few major FX currency pairs so I thought I would show you another example and explain it in more detail.
Market gaps most commonly occur when price moves quicker than the market or, in the case of weekends, when the market is closed. Things happen in the market over the weekend so...
Here is a simple day trade that I would have taken if I was not already shorting GBPUSD from the gap open on Sunday evening (linked). This day trade is very simple and utilises a few key rules for the analysis.
Criteria for a successful short trade:
1) Trend must be clearly bearish (lower highs marked in yellow).
2) Price must be below daily pivot and retest.
Support orange arrows.
Resistance purple arrows.
Who says you cant see trade setups just using zones and levels? It looks pretty simple to me, You can see how strongly this zone is respected from where price has entered our zone and then bounced ( marked by arrows )
Now it seems pretty clear to us where price is heading and we haven't got any indicators on our...
ORANGE ARROWS - SUPPORT
PURPLE ARROWS - RESISTANCE
Look at the chart and tell me that support and resistance and supply and demand zones are not the way to trade, then I will tell you to folk off ;p
As you can see that every time price entered into one of our zones it bounced or if it did break it made a big move, the same happened with our support/resistance...