At the end of January we highlighted the potential for USD/CAD to retrace back to its 50% level and print a swing low. It worked out well - although the 1.36 target did not arrive as soon as hoped. Still, it reached that key level on Wednesday - and it is a level that remains of interest. Not only did prices fail to close above the 1.36 handle and weekly R2...
The strategy used for this script was intended to take advantage of mean reversions in trading. The big green triangle signals bullish divergence and the other buy signal indicated a mean reversion detected. Along with basic chart analysis we can confidently take a long position here and I'm targeting a fill of the FVG(fair value gap) just overhead. First point of...
Historic Price Opportunity: NYMEX:NG1! (Natural Gas) is at a crucial level, with prices hovering at a point not consistently broken since a monthly close in July 1995. The weekly chart reinforces this, showing rare closures below this threshold over the last 30 years. Technical Indicators: RSI Bullish Divergence: The weekly RSI divergence suggests...
We expect further downside on this pair, signalled by the stoploss hunt at the high of the current month. We can also see a formation of a double top pattern which further supports our directional basis.
We expect further upside on this pair, signalled by the key level breakout. We can also see a change in market structure from bearish to bullish which supports our directional basis.
We expect further downside on this pair, signalled by the key level breakout and retest. We can also see a change in market structure from bullish to bearish which supports our directional basis.
Mean Reversion is the simple strategy of price moving 'too' far away from its averages and potentially requiring a reversion before either continuation or ideally total reversal Aave has been offering some beautiful mean reversion entries for us recently even to the point of essentially two sigma. Both the buyzone meanmove right to the sellzone meanmove. That is...
Multiple indicators have signaled bear as well as overbought conditions for Bitcoin on the 15m chart. This makes sense because Bitcoin has just experienced a pump within a short period of time. Usually, this means a retracement will follow as market participants will be compelled to take profits which means selling in the shorter term, a potential dip may be an...
A potential Reversal on VRAUSDT is imminent as things are looking incredibly overbought at the moment. To further back the point of a potential reversal, Bitcoin, which leads the crypto market, is also looking oversold. On higher timeframes, a reversal has not been signaled yet, but things are also looking oversold. There can be a potential short squeeze...
Primary Chart: TSLA on Weekly Time Frame with a Downtrend Line from the All-Time High and Fibonacci and Measured-Move Levels Preliminary Comments TSLA is poised to stall soon, perhaps into July 21. By definition, a stall does not necessitate a crash or major trend reversal (at the primary degree of trend). A major reversal downward (crash) is always...
USD/JPY has been playing nicely with our analysis of late, having rallied to 145 and close the 300-pip liquidity gap we warned of before accelerating lower this week in line with our bearish bias. But given levels of support nearby and a few metrics on hand, bears may want to be cautious around current levels. USD/JPY is trying to close lower for a fifth day...
Veracity looks set to pamp! There's multiple golden corner mean reversion trades in play with 80% odds of hitting their targets (as long as the lows hold). This Elliott wave count suggests that Verasity could be entering the most explosive wave, the 3rd with multiple algo targets above. In the past I've noticed setups like this often fail to hit the LOG targets...
Potential Pairs Trade setup: Long: 100 shares of AAL Short: 272 shares of JOBY Target would be 1-2$ of the spread
Greetings fellow traders, Welcome to this installment of our newsletter where we analyze price action on AMEX:SPY on the daily, hourly, and 15 minute timeframes. We will keep this one short and sweet. DAILY TIMEFRAME What is the Trend? The short term trend is bullish: the 9-candle EMA is trading above the 20-candle EMA. The medium term trend is bullish: the...
It has been 9 weeks since QQQ tapped the 21-ema on the weekly chart. The last time that happened? December 2021. Tech is mega-stretched to the upside, and mean-reversion is on the menu. $330 puts expiring in two weeks $310/$290 put debit spread expiring in September. $345 stop loss. Hedge with short-term calls as needed.
- Big initial move right of out the gate - ~1 month consolidation - Confluence of MAs - New Momentum - High ADR - Pharma
- Massive move 2,000%+ - Obeyed 20 MA for entire move - Sitting back on 20 MA - High ADR - Tight right side - Biotech
- Run up and settle - Sitting on 5MA - High RS - High ADR - Biotech