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Boxrange

OIL SHORT TRADEHello people. I keep it short and simple today! Oil is in a box at the moment. If you look closely at the moment of March 20, it seems that we are going to experience the same moment now, There is a good chance that we will drop back to 21. There is a small retest where the first high came in around 27.30, so I'm going short! Stops just above the highest point, which is 28.50. This is not a signal, it is only for education Leave us a comment or like. :) Have a great day everyone!
FX:USOILShort
by PicoWizard
REPEATING OLD HABITS - Box strategyPRICE IS KING: I removed all my indicators for this analysis. I just want to focus on price. Price, after all, is king, and every indicator (RSI, Money Flow, moving average) is just a derivative of price. Price is also a reflection of supply and demand, and the human behavior (fear and greed) behind supply and demand. PRICE HAS MEMORY Sometimes price has a memory and repeats its old behaviors - It's hard to teach an old dog new tricks, and people repeat their habits. Therefore, that's why we see price patterns repeat themselves, because humans repeat themselves. Technical Analysts are partly like psychologists, looking for behavioral patterns that repeat themselves. Unlike psychologists, we want to take advantage of those behaviors to make money. FORMING A BOX - Box 1 I have created two boxes on the chart. The first BOX 1 has borders based on the support and resistance levels between roughly 2000 and 3000. Bitcoin climbed to 3000 for new all time highs back in June, but sold off quickly and fell to below 2000 by mid-July. It didn't stay for long at those low levels, however, and shot back up to 3000, where it rested until finally breaking out in early August on it's climb to new all time highs at 5000. But in BOX 1, we see the price bouncing between the upper and lower bounds, between 3000 and 2000. HOW TO TRADE A BOX Within the box it is a mess, and it's difficult predict a trade, because the price is just bouncing around, almost randomly as buyers and sellers adjust their positions. But there ARE good buying opportunities at the bottom of the box, or on the breakout of the box (to the upside OR downside). BITCOIN'S BOX 2: BOX 2 is a box in formation. We see a similar pattern, with all time highs at 5000, then a quick pullback. Box 1 had a pullback of 30% from it's top boundary resistance to bottom boundary support (3000-2000 = 1000, 1000/3000 = 30%). If we see a similar 30% pullback in Box 2, then we can expect the bottom box boundary at 3500 (5000 - 3500 = 1500, 1500/5000=30%) HOW TO TRADE A BOX 2: In the second box, we can make a trade by buying in at the bottom of the box's range, selling at the top of the range, OR waiting to buy a breakout of the box to new all time highs. CONCLUSION Boxes are a nice way to look at consolidation patterns that may seem too disorderly to place in the category of a flag, triangle, or other tight technical pattern. Boxes define a range, and we can either play the range OR wait for a range to breakout to the upside or downside.
COINBASE:BTCUSDEducation
by BerlinTrader591
3
USD/JPY UPSIDE BREAK - LOOKING FOR A DOUBLE BOTTOM TRIGGER - SeeFX:USDJPY The rate broke the January falling trendline and the falling gap resistance invalidating my immediate bearish bias on the pair. I am now looking at this as a potential double bottom formation and will be looking for a neckline break at 115.50 to target the yearly highs at 118.60. A strong rejection from the neckline would indicate further range trading and a possible move towards the base of the range at 112.60.
by TradeItSimple
EUR/USD - DOUBLE TOP AT THE RANGE RESISTANCEFX:EURUSD The rate is currently testing the neckline of a small double top formation which has formed at already established range resistance. I am looking for a downside break below 1.0505 to enter new short positions to target the range support at 1.0360. A failure to break through would invalidate my immediate bearish bias as it would suggest a short term bull flag in which case we should be looking a break above 1.0625 to target 1.0670 and 1.0770.
Short
by TradeItSimple
GBP/AUD - A POSSIBLE HOLIDAY TRADEFX:GBPAUD The rate is still trading within the box range I mentioned last week (for full trade idea click here ). The thin holiday trading liquidity, however, has pushed the rate into an even smaller range. The lack of fundamental catalysts, the pressure which the rate is applying on the former resistance as the new support at the major psychological level at 1.7000, and the fact that it simply is easier to trade in a confined range than to create important breakouts, makes me look for a downside break here. A close beneath 1.7000 level would open up a way down towards the range support at 1.6830 and a possible continuation which should then target the 100% range extension around 1.6520. As tempting as it might seem, I wouldn't be trading an upside break above the range resistance at 1.7150 before next week, as the probability for a false break in low liquidity conditions is very high.
Short
by TradeItSimple
GBP/AUD Trading at resistanceFX:GBPAUD The rate is currently trading beneath some important resistance levels - the 6-month falling trendline starting after the rate made a breakaway gap from the Brexit low, the former channel support as the new resistance and the monthly high at 1.7170. I am bit more bearish here and will consider entering a short on a break below 1.7000 to target the current range lows at 1.6820 and the 100% box range breakout target at 1.6520, however, I will be open to taking a small long position in case of an upside break above 1.7170 in which case we should be looking for a move higher to test the major falling trendline resistance in the 1.7335-1.7450 area (the box range breakout targets for an upside break)
by TradeItSimple