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EURUSD Neutral Monday! Waiting for market sentiment!The pattern triangle was crossed to the bearish direction, however there is no strong fundamental support for strong dollar as FED's Jerome Powell's speech was dovish last week. We need to wait during Monday and figure out market sentiment, this is now crucial to make weekly trading decisions. Targets: Resistance N2 - 1.1880 market open for this week Resistance N1 - 1.1836 (Daily low for July 12) Support N1 - 1.1770 weekly low price for this week Support N2 - 1.1711 Monthly low News US to follow: 10:00 German Buba Monthly Report 14:00 Housing Market Index
by AmiranAzaladze
Polkadot falling to 14.200!! Price action strategy will help us.On the DOT / USD currency pair, I expect the price to fall to 14,200. At this point, there is a confluence of strong support levels and the bottom trend line. Now it is necessary to wait for the price reaction and then switch to a lower time frame because only from what is happening inside the subsequent candles we can determine whether there will be a rebound and the price will rise from around 14,200. After that, the space has to rise to values around 18,000. On lower time frames, we need to use the Price action strategy. Remember, without a strategy, your trading is gambling.
Short
by UltimateCryptoTrader
Hey SXP, feel free to continue the decline, I don't mind...The price of SXP is between two strong daily S / R zones. At the same time, we are below the TL signaling the Down trend and also below the EMA Daily 200, which also indicates the downtrend. However, the current support has already tested 3 times and stopped the falling price. This may signal an upward reflection to test the trend line. The most important thing is what happens inside the current hourly candle. We can find out if we switch to a lower time frame. Ideal for entry according to our Price action strategy is the time frame M15, where we evaluate the current situation and decide accordingly whether to trade SXP.
by UltimateCryptoTrader
Learn how to create a setup using 5 price action itemsToday we will learn how to create a full setup using 5 Price Action items. This process will be made on the 1H chart and is extremely useful for Swing setups. However, the logic can be applied in any timeframe. This can also be applied to any direction today; we will work with a short setup, but it is the same for a long setup. 1) Daily Resistance zone: If we are working on the 1H chart and the price is about to face a Daily Resistance zone, we should expect a reaction there; WHY? Because The higher the timeframe of a level, the stronger it is, and we should be ready for a reaction there. This should be the first filter to use: The price is about to face a higher degree zone. 2)Define the minor support and resistances of the current trend: If we are waiting for a reaction on the Daily Resistance zone, it is essential to understand the levels we have on the current trend. WHY? Because we will use them to define the next target and the Corrective structure's location to trade. 3)Wait for the breakout of a relevant trendline: In this case, we want to see the price breaking the Ascending trendline; WHY? Because that would be a signal that the Reversal movement on the Daily level is going as expected. The breakout of the Ascending trendline is a key element: Know the conditions are optimal to start thinking on a short setup. 4) Wait for a corrective Structure on the minor Support zone: Corrective Structures are ABC or ABCDE patterns. You should be able to draw edges on that sideways movement. You can define that is ready when you have something like the example you see on the chart. 5) Now, everything is aligned to develop a setup. Your bearish idea is supported with all the previous 4 items; only at that moment you can say I will create a short setup. Define your entry-level below the structure or below "B, set your stop above "C". Define your Target on the next minor support/resistance zone. Pay attention to the risk-reward ratio you have; only take setups with a R/R ratio higher than 1.5 Thanks for reading! We hope this Template can help you with your trading.
BITSTAMP:BTCUSDEducation
by ThinkingAntsOk
3
Corrective Structures and Fibonacci ExtensionsHere, we will expand the information about the chart. Corrective Structure: Tell us about an accumulation/distribution process. That means that Institutional funds are trying to buy the maximum amount of an asset. Remember, they have a lot of money. They cant set a buy order as Retail traders do. They need to average their buy on a range (that takes time). The same applies to the selling process. A key aspect of this process is the idea that when they buy, they will move the price; after that, they need to sell a partial amount of the previous purchase to keep the price in range. When the price falls again, they loop the process again. These actions create corrective structures that retail trades can use to understand that this is happening and simply wait for the breakout. Fibonacci Extensions: Ralph Nelson Elliott stated that, while stock market prices may appear random and unpredictable, they actually follow predictable, natural laws and can be measured and forecast using Fibonacci numbers. ( In this case, Fibo Extenssions provide us with Targets based on proportions with previous movements) Elliott stated that, while stock market prices may appear random and unpredictable, they actually follow predictable, natural laws and can be measured and forecast using Fibonacci numbers. We hope the information was useful!
NASDAQ:ADBEEducation
by ThinkingAntsOk
2
Bearish Reversal Candlesticks PatternsHanging man The hanging man is the bearish equivalent of a hammer (bullish pattern). It typically forms at the end of an uptrend with a tiny body and a long lower wick. The lower wick designates that there was a large sell-off, but bulls headed to take back control and drive the price up. Holding that in mind, after a lengthened uptrend, the sell-off may act as a warning that the bulls might soon be losing control of the market. Shooting star The shooting star is a comparable pattern as the inverted hammer (bullish pattern) but is formed at the end of an uptrend. The shooting star is composed of a candlestick with a long upper wick, little or no lower wick, and a small body, ideally near the low. It indicates that the market reached a high, but then sellers took control and drove the price back down. Three black crows The bearish equivalent of three white soldiers (bullish pattern). The three black crows are made of three sequential red candlesticks that open within the previous candle’s body, and close at a level below the previous candle’s low. Ideally, these candlesticks shouldn’t have long higher wicks, betokening continuous selling pressure pushing the price down. The dimension of the candles and the length of the wicks can be used to estimate the chances of continuation. Bearish harami The bearish harami is a long green candle followed by a small red candle with a body that’s completely contained within the body of the previous candle. The bearish harami can unfold over two or more days, marks at the end of a downtrend, and may symbolize that buying pressure is decreasing. Dark cloud cover The dark cloud cover pattern consists of a red candle that opens above the close of the previous green candle but then closes below the midpoint of that candle. It can often be co-occurred by high volume, indicating that momentum might be shifting from the upside to the downside. Traders might wait for a third red candle for confirmation of the pattern. Best regards EXCAVO
Education
by EXCAVO
10
Trend Continuation Candlesticks PatternsTrend Continuation Candlesticks Patterns There are countless candlestick patterns that traders can use to identify areas of interest on a chart. These can be used for day trading, swing trading, and even longer-term position trading. Rising three methods This pattern occurs in an uptrend, where three consecutive red candles with small bodies are attended by the continuation of the uptrend. Ideally, the red candles shouldn’t breach the area of the previous candlestick. The continuation is confirmed with a green candle with a large body, symbolizing that bulls are back in control of the trend’s direction. Falling three methods The inverse of rising three methods, indicating the continuation of a downtrend instead. It’s relevant to note that candlestick patterns aren’t fundamentally a buy or sell signal by themselves. They are rather a way to look at market structure and a potential indication of upcoming opportunities. My dear friends, the sooner this publication gets 300 likes, the earlier I will make the next education post about other candlesticks patterns. Best regards EXCAVO
Education
by EXCAVO
11
What is the Wyckoff Method? #2 Distribution SchematicDistribution Schematic In essence, the Distribution Schematics works in the opposite way of the Accumulation, but with slightly different terminology. Wyckoff method distribution schematic Phase A The first phase occurs when an established uptrend starts to slow down due to decreasing demand. The Preliminary Supply (PSY) suggests that the selling force is showing up, although still not strong enough to stop the upward movement. The Buying Climax (BC) is then formed by an intense buying activity. This is usually caused by inexperienced traders that buy out of emotions. Next, the strong move up causes an Automatic Reaction (AR), as the excessive demand is absorbed by the market makers. In other words, the Composite Man starts distributing his holdings to the late buyers. The Secondary Test (ST) occurs when the market revisits the BC region, often forming a lower high. Phase B Phase B of a Distribution acts as the consolidation zone (Cause) that precedes a downtrend (Effect). During this phase, the Composite Man gradually sells his assets, absorbing and weakening market demand. Usually, the upper and lower bands of the trading range are tested multiple times, which may include short-term bear and bull traps. Sometimes, the market will move above the resistance level created by the BC, resulting in an ST that can also be called an Upthrust (UT). Phase C In some cases, the market will present one last bull trap after the consolidation period. It’s called UTAD or Upthrust After Distribution. It is, basically, the opposite of an Accumulation Spring. Phase D The Phase D of a Distribution is pretty much a mirror image of the Accumulation one. It usually has a Last Point of Supply (LPSY) in the middle of the range, creating a lower high. From this point, new LPSYs is created - either around or below the support zone. An evident Sign of Weakness (SOW) appears when the market breaks below the support lines. Phase E The last stage of a Distribution marks the beginning of a downtrend, with an evident break below the trading range, caused by a strong dominance of supply over demand. Outcome: Naturally, the market doesn’t always follow these models accurately. In practice, the Accumulation and Distribution Schematics can occur in varying ways. There may be delays in some phases. Still, Wyckoff’s work offers a wide range of reliable techniques, which are based on his many theories and principles. It is certainly much more than a TA indicator. In essence, the Wyckoff Method allows investors to make more logical decisions rather than acting out of emotions. The extensive work of Wyckoff provides traders and investors a series of tools for reducing risks and increasing their chances of success. Still, there is no foolproof technique when it comes to investing. One should always be wary of the risks. Best regards EXCAVO
BEducation
by EXCAVO
18