Bearish Pin Bar
GBPAUD: VALID BEARISH CYPHER PATTERN WITH GOOD RISK TO REWARD!!!Hello Traders,
Here we have a valid bearish cypher pattern on FX:GBPAUD , that is coming close to its completion point. After adding few Fibonacci extensions and inversions, I was able to obtain 3 Fibonacci confluence zones and all of them are located between our short entry (1st zone from the bottom) and the X point of the cypher pattern. Also note we have a really nice bearish pin bar right at the X point. Thus we might see the market come back up near the bearish pin bar and so our stops need to go above that pin bar. So we got 3 different Fibonacci confluence zones + the bearish pin bar, if the market is able to go through all these "potential" resistance levels than we better make sure to exit with a small loss. See the chart above for more information.
Trade Summary:
Short Entry Level: 2.0600 (psychological round number)
Stop level: 2.07956 (risking 0.94% of total equity)
Target #1: 2.03698 (potential return of 1.12%)
Target #2: 2.02272 (potential return of 1.82%)
HIGH IMPACT NEWS EVENT: Got "Services PMI" number coming out tomorrow early morning from GBP @ 4:30 AM.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
Follow me on Twitter as well: moneymaking2016
EURGBP: BEARISH FLAG PATTERN FORMED AT DAILY TREND LINE !!!Hello Traders,
After doing top down analysis on FX:EURGBP , I have couple of key ideas that I would like to share with you guys. First of all we can see a clear rising channel (purple in color) formed on the 4 hour chart. Do notice the 2 false breakouts that we got in that channel. I only consider any level being broken only when we get a valid retest after the breakout. In our case, only after 2 false breakouts did we get a valid retest of the channel in the form of a bearish pin bar. Currently we have broken the flag pattern and now we only need to wait for the 4 hour candle to close before shorting this pair. The primary target for the flag pattern has been labelled on the chart above. The stops will go above the top portion of the flag pattern (the line which was tested by the bearish pin bar).
Secondly, if the market is able to come all the way back to the bottom of the rising channel, than we could also potentially have another opportunity to add onto our previously short position from the flag pattern. So, if we get a breakout to the downside in the channel, than we can look to short again at the retest of the broken level (marked by red dashed arrows).
After all targets being reached, if you still have any short positions open, than you could probably hold it till we get down to the 0.69862 level, which is a strong MONTHLY support level. If we switch over to the daily chart, we see a clear bearish pin bar formed right at the falling trend line, which was drawn by connecting August 2013 and March 2014 highs. This trend line has proven to be valid after the market was strongly reject from it in November & December months of 2014 as well as recently in October of 2015. See the charts posted after this description for more clarification.
Lastly, we are also seeing strong bearish divergence on the MACD as well, which just adds on to our overall bearish view on this pair.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
Follow me on Twitter-0.04% as well: moneymaking2016
Illustration of Bearish Pin Bar formed at daily trend line:
Illustration of daily trend line importance:
Illustration of valid bearish bat pattern:
NZDCAD: SIMPLE PRICE ACTION BASED TRADE SETUP ON DAILY !!!Hello Trader,
This short trade setup on FX:NZDCAD is simply based on current price action and the key levels that are labelled on the chart above. As we can see that after every consolidation periods (yellow lines) we got breakouts in the form of strong impulse moves (blue arrows). After being in a strong impulse move for the past 4 weeks, the buyers seems to be running out of steam. Keep the 0.90000 key psychological round number in mind, most likely to act as strong resistance level. See the chart above for more detail.
Below is the list of valid reasons for placing short pending orders:
1.) Bearish Pin Bar formation right at key psychological round number of 0.89000
2.) Bearish Pin Bar formed exactly at 200 day moving average, which is now currently acting as strong resistance
3.) Strong RSI Bearish Divergence
4.) From historical perspective, market retraced most of the time AFTER strong impulse moves
ENTRY: 50% of the Bearish Pin Bar's wick
TARGETS: 1st @ 0.88049; 2nd @ 0.87139; 3rd @ 0.85152
STOPS: 20 pips above the Bearish Pin Bar's high
NOTE #1: Each target is based on key structure levels (previous swing highs or previous swing lows)
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
Follow me on Twitter as well: moneymaking2016
