Emekadavid

Emekadavid

Price for EURCHF has been trading in a range for some time. Now, price is at resistance and a high volatility two bar resistance has formed. This is very significant. I think it will push price downwards to the next support. Whatever happens after that support is left to the market. I expect few pips from this short trade. Somewhat like 50 pips.

Emekadavid

This is a eurusd short opportunity for the coming week of trading. I see exhaustion of the bullish trend at the resistance and this is followed by a three bar reversal with momentum and volatility. That means price will most probably reverse. But since the pair is trading in a range, the fall in price would be like 100 pips or less.

Emekadavid

Definition: An engulfing bar is a bar whose trading range totally encompasses or engulfs that of its predecessor such that it has a higher high and lower low. They develop after both down- and uptrends and represent exhaustion. They could be bullish engulfing bars which close higher than the open, or bearish engulfing bars which close lower than the open. A...

Emekadavid

A bearish engulfing bar has formed at the resistance of the AUDJPY on 4Hr. The bearish engulfing pattern has momentum behind it as it is reversing a sharp uptrend that shows signs of exhaustion. Good trade. Have to watch it though because there might be some traffic along the way down. Place pending order according to entry strategy. Use due risk and money management.

Emekadavid

A pin bar has appeared that is confluent with resistance and a downward trendline on the GBPUSD 4Hr time frame. It is large and gives good signal. I believe that there is high probability that price will go south. So, this gives an opportunity to go short. Set pending order at the break of the low of the pin bar and stop loss just some pips above the high of...

Emekadavid

Bar patterns consist of one, two or few bars. Their usefulness lies in the fact that they can trigger signals at a relatively early stage in the development of a new trend and usually offer good benchmarks for traders to place low-risk stops. Overall, when considering these patterns, one key factor in determining their significance is the size of the pattern. Note...

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We want to trade trendlines, but not all trendlines have equal importance. Whether price has touched a trendline or violated it, we should act based on whether the trendline is significant or not. The following three factors are usually considered when evaluating the significance of a trendline: the length of the line, the number of times it has been touched, and...

Emekadavid

Price has touched that 1.0786 support about 4 times within three weeks. Therefore, the sellers have been testing the resolve of the buyers, showing the buyers are getting weaker each time. This reasoning is confirmed by the descending triangle that is forming at that support. So, it is highly probable that price will break that support when trading resumes next...

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Earlier, we noted that the completion of a price pattern can signify either a reversal in the previous trend, called a reversal pattern, or a resumption of the previous trend called a consolidation or continuation pattern. Similarly, a break or violation of a trendline will result in either a reversal of that trend or its continuation. First, USDZAR chart...

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Trendlines are one of the simplest tools in technical analysis and about one of the most effective for price patterns since they form the building block for pattern identification and interpretations. What is a trendline? – A trendline is a straight line connecting a series of ascending swing lows in a rising market or the top of descending series of swing highs...

Emekadavid Updated 

US Natural Gas posted a great decline on Friday at the close of the markets. I am highlighting it because it is the greatest decline among the commodities I am watching. The fall was about 3%. With demand down for energy, I foresee further fall in prices next week. This is a good time to short.

Emekadavid

A possible break of the support along with a shorting opportunity is imminent in the CADJPY pair as shown in the chart above. Price has formed a symmetric triangle after coming from a downtrend, so the downtrend is possibly going to resume after a short retest of the structure. Short opportunity but do due risk and money management.

Emekadavid

The GBPCHF has completed a double top pattern on the daily. This is a possible opportunity to go short. Please, trade with due risk management and adequate position sizing.

Emekadavid Updated 

AUDUSD has formed a bearish engulfing at resistance. This pattern indicates that price will likely go south. Time to short it. Do all due risk management and position sizing for the trade.

Emekadavid

The cable, GBPUSD, has formed a double top as seen from the chart. This means that price is likely to go south next. This is an indication that short opportunities are evident. Thanks Do due risk management and position sizing before taking the trade.

Emekadavid

When price goes to a key level, that is, a support or resistance level, it will either hold and reverse price or it will break and be violated. There are no hard and fast rules for determining if a key level will hold and reverse price but I can give you some guidelines on what to look out for that would increase the odds that a support or resistance would hold....

Emekadavid

1. Swing points: Previous highs and lows These points are intelligent points where one would expect support and resistance. They are high probability points because sellers and buyers made decisions on these points in the past and it is more likely that when price gets there again, due to people’s psychology being constant, they would tend to act on these points....

Emekadavid

Support and resistance are points on a chart where the probabilities favor at least a temporary halt in the prevailing trend. Support is experienced when demand concentrates around a zone as price is in a downtrend and price finds it difficult to break below that zone. This is because traders have placed a high number of buy orders at the zone, preventing prices...