Notice how the price rebound from the 50% FIB level ? Also, did you see the last green candle was a nice bullish engulfing candle over the previous one?
I like to think the 21EMA is a good indicator of price action and when used together with candle stick, it is powerful. Look at the 8 purple balloons that I have circled. Notice each succeeding upmove is evidenced by a bullish engulfing pattern, i.e.. 1-2 green candles closing higher than the previous red candles. Sometimes, it is obvious, others less...
First, it broke out of the upper channel fiercely, taking us out of shorts. We stay on the sideline to watch, it falls to the near 50% FIB level (see yellow dotted line) and we take a nibble at 1.17500 to buy. NOTE - it has closed above 21 EMA with a strong bullish engulfing candle, no reason for us to think it will go south in the short term. All the best in...
A nice inverted Cup and handle is formed, expecting it to follow the yellow arrow line. Buy on dips. If one looks carefully, the price action also indicates a nice H&S pattern as well, head at 0.99443, left shoulder and right shoulder at 0.99113. Thus, if this formation holds true, then, the price action should retrace slightly, touching the 21 EMA before going...
3 days of selling or profit taking to take off some heat. The last daily candle is bullish, closing above 21EMA. Bulls continue, bears retreat.
Looking at the daily chart, you can see there were 3 attempts to rebound from the 618 FIB level. The 3rd attempt had a nice bullish engulfing angle. Price action sits above 21EMA, a bullish sign for us and we took a small nibble at 69.2. We think the H&S shoulder pattern is forming in process. Once it breaks out of the triangle, it should heads towards the right...
This weekly chart shows that price action being rejected the 4th time at the 50% FIB level. Will it breakout on the 5th attempt? On hindsight, we can see that 2016 was the bottom for Copper at 2.00 price zone before it charge up to current price of 3.07. In the past, I would reprimand myself for missing this great opportunity! Not anymore, not being able to...
I have discovered this Cup and Handle pattern for a while and it has helped me in many forex pairs, indices and even commodities which I trade. This is an inverse Cup and Handle pattern and the right handle is formed with the green lines. By drawing a line (upper channel - black) touching the peak of the base cup and touching the various peak downwards, one can...
One of the lesser mentioned index but one that has immense potential. If one looks at a longer time frame like weekly or monthly, it is hard to tell if this is SPX500 or Nifty 50 as they resembles an exceptionally strong bullish trend. Could I be right ? I see a Head and Shoulder pattern forming with the left shoulder already formed and a possible right shoulder...
I know in some countries, people drink coffee without sugar but in many Asian countries, they like it sweet. Really sweet , haha. So if you like sugar in your coffee or tea for that matter, you can also make money from it. Day chart analysis : 1. Price is sitting nicely above 21 EMA . 2. See the 3 green caps - it is the Head and shoulder formation pattern. My...
The 1H chart shows that the price action is moving down. It is likely to go to 3.033 (i.e. 618 FIB Level) before rebound. Please note that I use the 618 Fib level as an guide and not precise buy/sell entry. That means, I do not enter the market now at 3.033 and hope it moves up. There have been times in other charts where I have seen the price action move way...
This is an interesting day chart showing the relationship of Dow Transport Index and Dow Industrial Index. Did you notice that each time, DOWT (blue line) went south, it would rebound.First time was April, then July and now November this year. The yellow dotted line shows the support that the current price of DOWT is at ,9501.93 which was the same in Sept 18. It...
I find that when one says the word; "bullish" or "bearish",it can create some misunderstanding for some traders. For example, if you look at the monthly chart of GBPUSD and if my analysis is right (i am at times wrong), then I forsee more downside to come. The white box shows the price action in a consolidation stage from 2009 to 2015 before it heads further...
There are 4 attempts that the price action tried to breakout from the 618 FIB level but without much success. The 4th one (July 2017) hit the upper channel line and collapsed to 107.48 from the high of 114.44. Wow, that is a nice 6% profit or 700 plus pips. Now, pay attention the 5th attempt that it tries to break out from the 618 FIB level. 2 things to take note...
It took only 3 months in 2015 May till Aug for the index to crash 45% from its peak but is more than 2 years now and we are blessed indeed to see it pulling back nearly 57% of its previous shiny days. That means it has nearly 15% more to catch up to its previous high. Notice the nice Cup formed, expecting a right handle to be formed soon (pull back). The fall...
By changing the chart patterns into lines and doing an overlay, one can see clearly the co-relation between oil price and XOM. Thus far, they are moving in tandem. Also, the monthly chart of USOIL is bullish with price action above 21EMA.