Starting with daily chart we have a clear Bearish divergence shown. Moving down to H4 we have the same divergence and candle confirmation. But since we are already late for initial entry best is to wait for the support to be broken and double top formed by breaking the neckline then shorting becomes sense.
We have a bullish divergence which is an important parameter. But we can't just long. Why?? We need more bullish parameters which among them candle confirmation is of an essence. so best is to wait for candles to show bullish tendency then jump in.
My favorite pair has an important week on it's way. it reached the same High level as March 2018 and now has shown bearish Divergence on daily and Weekly Time frames. In addition to these parameters shown we have a Bearish Trend line (Purple Color Coded) in place since 2014. For the Time being my view is short, till further price action proves otherwise.
Despite All it's effort our pair couldn't break below February 26th low and finished the week with a narrow body candle. Current level is important for us for two reasons: 1. it's been the lowest since February 26th and is a potential support. 2. we have a great divergence case So for the time being we can expect a price to rise till the level of falling trend...
Price is getting close to the line connecting the highs So first Hindrance in price way up is there. If we draw a Fibonacci extension. The level 1.618 is spotted very close to same Line connecting the Highs. Last but not least we have a possible bearish divergence case which with candle confirmation can lead to bearish move.
Let's start with great support line which has been in action since May 7th. Then close attention shows divergence is forming. The Only thing left is jumping in with candle confirmation.
We have a head & shoulder pattern if neckline breaks. Then on daily chart, the price is at a great support level.
Wait for clear bullish signal then enjoy the Ride
Harmonic patterns are important tools at the trader's arsenal. It takes time to spot them on the chart but once you get the hang of them, they'll become your favorite tool. we have couple harmonic patterns which you can look them up on google by a simple search. For this particular chart we happen to have a Bearish Harmonic pattern which has worked out...
Clear bearish divergence is shown on H4 in addition to that price hit the upper band of it's channel and candle confirmation is present. i believe we can have a nice short setup.
Based on what is seen right now we have a possible short setup
We are back we another divergence. Our currency showed bearish divergence and dipped down 50% But our long term Bullish trend line managed to hold as support and carry the price up for the time being. Right now further clarifications are needed assuming we are going to long this
Always watch out for Divergence Make Sure you incorporate Divergence in your analysis because prevents you from entering Wrong position or god forbid getting stopped out In this chart we can see Regular bearish divergence is shown on H1 and following that price dips down but later on manages to recover.
The power of support & resistance combined with Candle stick patterns is amazing. But added confirmation of Divergence gives us much more certainty. At the point of cross we had everything needed for long trade 1. Support 2. Trend line 3. candle formation 4. Regular Bullish divergence So neat and clean
The Power of channel line combined with Support and Resistance is Phenomena. You can see how beautifully price reacted to areas of support and Resistance and now is retesting the broken channel line in H1. Provided that support is shown we can aim for previous high.