Things I look for in a valid double bottom formation:
- Second test which completes the double bottom fails to make a new low
- Price must close above the highest point in the double bottom swing to initiate the buy trade
Potentially long position on USDCAD H1 timeframe. Potential double bottom forming at a major support level. Wait for it to become valid before buying. Price has very nearly hit the upwards trend support level, shown on the H4/D1 timeframes. Stochastics is showing as 'oversold' and RSI is reading 34%.
Trade at your own risk.
Short opportunity for AUDNZD on H1 timeframe. Double top forming at major resistance level 1.04990. Wait for double top to become valid before selling. A solid profit target would be 1.04310. Stochastics have just exited 'overbought' and RSI is reading 60%.
Trade at your own risk.
uk oil has been in downtrend for a very long time now with price making a bearish flag on the daily chart.
Waiting for price to complete the bearish flag with one more move up, I say this because price made a double bottom and retested previous support so I am hoping price does the same before melting down at the top of the flag...
On the technical's this looks like a perfect setup for me. However Bearish JPY in the past hour or so means we could get stopped out rather quickly. So on to my setup!
We have Bearish three point moves on the 1D, 4H and 1H.
Price has recently pulled in to my last chance entry zone on the 4H and provided us with a lovely Double Top entry to get...
As you can see by the graph, EURGBP has hit a consistent resistance around the 0.8911 mark. This is indicating that the pairing will drop to the 0.885 support and either break through to 0.8858 and beyond or rebound back to the resistance at 0.8911. This trade can be seen on H1 and H4 timescales so should be easy profit within the next couple of days.
4hr - Price deceleration at support zone, currently rejecting this level
1hr - double bottom with bullish divergence on the MACD.
This is a quick play back up to the 1hr 50 ema. Extended targets at the 4hr 50 ema.
Looking at the chart you can see the price at the daily resistance level (1.63300) were its rejected twice from here and indicates a likely reversal.
Hopefull or stupid ill soon find out but im expecting a drop to 1.61050 if no support is found at this level expect this to plummet and retest 1.57250 area.
If you go over the the 4hr youll see again a double top...