Looking at the EURUSD following yesterdays bullish break above 2350, the market is putting in this ascending channel with RSI divergence.
There are a couple of conventional ways to enter this set up. I'm looking at three ways to get involved. a test of the channel resistance, a break and close below support OR an FTB signal. See you in the live room!
Following an overall bearish week (netting 330 pips with 6 for 6 trades), one of the pairs I'm looking at reloading on next week is the GBPUSD if we can get a retest of that 3850 level. I'll be looking on the lower time frames for an entry but looking to ride this down by trailing stops.
Have a great weekend guys.
Shorted this pair following the valid set up of the Double top I was waiting for.
Great risk:reward profile on this set up.
Initial test = RSI over bought
Retest = Bearish divergence on RSI
We have also just had a lower low, lower close candle too so hopefully we can see some more bear pressure.
I'll be taking profits off at the level shown on the chart.
Seeing the fear driven sellers some into this market has created what is known as a "head and shoulders" pattern.
This is a very successful reversal pattern in many other markets and although we haven't had the sample size of data due to the nature of this young market, it will be very interesting to see if we hold the test of the neck line once broken.
Looking a the GBPJPY as we approach previous structure resistance, RSI has gone massively overbought and as market puts in this ascending flag or rising wedge, there is a sign that we are running out of steam as we see the bearish divergence on the RSI.
Its likely that we will see a short relief move to the downside.
See you in the live room.
We have another flag pattern setting up on the AUDCAD 60. This pattern indicates a loss of momentum as the market runs out of steam. Usually, filtered with some good bearish divergence on the RSI, we see a reliefe and a break to the downside out of this channel.
Breakout traders, keep your eye on it.....
See you in the live room.
Been taking some shorts on this trade ever since the violation of the H & S. We are approaching previous support so the opportunities are expected to slow down however there is this potential TC trade if we can get a pull back into my kill zone. Taking off some profit at a retest of the lows and then the remaining position at 6852.
Counter trend traders will...
Lots of consolidation over the last week or so which means lots of pattern opportunities.
this pair has a text book Gartley setting up at 111.36.
We will be looking for entries in the live room this morning.
See you there!
Seeing this ascending channel with bearish divergence normally means we are likely to see some relief here and a move to the downside.
Not necessarily a trend reversal but Any counter trend traders will certainly be looking at this level for a short on a break of this channel.
Lots of opportunities over the last week which we have been able to jump on and generate some very nice profits.
It continues this morning with this being one of the trades on the radar.
Previous structure support should become resistance but there is also a complex pull back which is setting up a fib inversion trade as well as a nice fib cluster at that level as...
Looking at this pair this morning I got Long at 0.7427
Lots of stars aligning on this one and difficult to explain on here but as you can see on the chart, lots of indications that we are likely to see a bullish movement.
Looking at this pair, like many pairs, we have seen some directional breakouts this week and last.
Price action is forming this rising channel and when we see this type of movement with RSI divergence, more often than not we see a period of relief.
Although I'm only looking for the trend continuation, many of you counter trend traders may be eyeing up this zone...