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Bullish Trend Line

NZDUSD : Get inside both short and mid term bullish trendThe NZDUSD pair is fluctuating inside both short term and mid term upside trends , with the easily recognizable tops and bottoms that are oriented upside. After a constructed drop in september and early october, NZDUSD has made a bounce at a great support point : - The ascending trendline support that shows the pace of the mid term trend - The 150 days moving average, which constitutes a dynamic support since March of this year. Since that bounce, the short term construction is also bullish. The current drop makes a great opportunity to enter long on this pair, with the following simple strategy : - Open long under 0.7200 - Stop @ 0.7085 (below the previous bottom) - Target @ 0.7380 (just bellow the previous top to make sure you get executed if the scenario is favorable) Reward/Risk ratio = 1.56 This scenario is short term ; if the stop had to be reached then we would seek to enter later, for example near the major support.
Long
by AlexandreNygal
Let's Take Friday's Market Drop Into Perspective...Yes. The Dow dropped about 400 points and the S&P 500 dropped about 55 points on Friday. As bad as it sounds and feels, let's take Fridays market drop into perspective. Since 2012, the SPY was about 125... Since July 2016, the SPY has been above 212. If you really think about this, the market action that took place on Friday was a drop in the proverbial bucket. The SPY went down about 5 points on Friday.... 212 ish - See the horizontal gray line For quite a while, the 212 level in the SPY was resistance. In July, the SPY got above the 212 level. Remember that resistance often becomes support. So that means "there is a chance" the SPY is just coming back to 212 to bounce and continue higher :) Yes. I have been called an optimist in the past... 2016 Uptrend Line - See the upward sloping green line The beginning of this line is back in February of 2016 when the SPY was about 180 ish. No one knew this line would exist back in February. It wasn't until the end of June that we got the second bottom, around 198 ish, that allowed anyone to see this line take shape. Let me make a quick point here. Please notice that the February bottom occurred very close to the "181.0 ish" line that was drawn on this chart because it was a level that was resistance and became support. The late June bottom also occurred very close to the "198.50 ish" line that was also a level that was resistance and became support. With all that said, it is possible the SPY will come back to this green uptrend line before it is ready to turn back higher. If that is what will happen, you can expect to see 209 ish on the SPY. That would be another drop of about the same magnitude as we saw on Friday. It may not happen in one day again but the SPY could get down there. If you are with me in my line of thinking, please notice there is a resistance line that became support in that area. It is labeled "208 ish" on the chart. Below the Horizontal 212 ish line & Below the 2016 Uptrend Line Let's just say the SPY gets below these two areas and just keeps dropping. You can continue to look at past levels of resistance that became support. Those levels may give you an idea where the market could turn around. Don't panic. Take each day as it comes. Learn to gauge the market's future potential on the market's past. Horizontal or sloping is your choice. There are many opportunities being created for long only investors. The drop that is creating long opportunities is in itself an opportunity for those willing to short.
AMEX:SPY
by TheTrendLineInvestor
GBPJPY Buy Bottom of Ascending TriangleBuy FX:GBPJPY After Bullish Candle Stick Formation Price @ Back Side of the Trend Line (BLUE) Touched Uptrend line (Pink) Higher Highs (Support, Blue Arrows) Very Sharp Counter Trend Line Break StochRSI Over Sold Entry: After closing of the daily Candle (This Friday), Place Trade Monday Afternoon Stop: 10 Pip Below Previous Low (153.229 appx.) Take Profit: 1.61.830 (Major Resistance Inside the Ascending Triangle) Risk vs Rewards : 1.20
Long
by shomonrobie
2
USDCAD: BEARISH CRAB PATTERN ON DAILY CHART !!!Hello Traders, Here we have a valid bearish crab pattern potentially forming on FX:USDCAD daily time frame. Just by reading price action, we see this market is in strong bullish trend. Keep in mind that there are still no signs of this pair slowing down just yet. Since the pattern is on the daily time frame the stop loss will not be suitable for every one, but we should be looking for any type of shorting opportunities on lower time frames with manageable stop loss levels, as the market reaches the 161.8% fib extension level. I personally will also be looking on lower timeframes to enter short near the 161.8% level. This market has been diverging very strongly on the weekly timeframe, shown by the RSI divergence on the chart under this description. See the chart above for more details. NOTE #1: we got many high impact news events coming out this week. See the chart above for the list of these events. NOTE #2: markets can still go higher even when diverging for long periods of time. Thus we need to see major structure levels break before taking divergence into account. Illustration of strong RSI divergence on weekly chart: Illustration of crab pattern completion point right at previous structure highs:
Short
by moneymaking
4
A 7 Month Look Back At The S&P 500 (SPY) - What Now?Several conclusions can be drawn from this DAILY chart of the SPY. Even more questions will no doubt come to mind as a result of those conclusions. If you thought you might find the answer to the above question you can stop reading now. The easy answer to the question is not in here. I surely can't foretell the future. Honestly, you wont get the answer anywhere. Maybe you should keep reading after all... Let's talk about some possible "What Now" scenarios. The market could just continue higher... Now this is a very unpopular scenario. When was the last time you heard a majority of the investment news guests leading you to believe that everything is good and the markets are poised to go higher? Yea, I can't remember that either. So it doesn't seem like many people are in this camp. To all of the people calling for a correction, all I have to say is look at the chart. The market just broke above a resistance level that was established in February. SPY has closed above that $212ish level for 6 days now. All I am saying is it is a possibility... The market could go sideways for a while... Lets say the SPY sinks back below the $212ish level and hits the green uptrend line before going back up to the $212ish level where it is rejected again. It goes back to the green uptrend line again before turning higher. Etc... This could go on and on and on. It might be July before the "Wedge" is resolved. And then you will still have to play the break of the wedge properly to profit from it. All I am saying is this too is a possibility... The market could go lower any day now and make a bunch of business news guests look like really smart people... If this is the market reality we are faced with as so many are predicting, let's look at what has to happen and how to deal with the possibilities. First thing is the SPY will have to go back below the $212ish level. This would, at the very least, give us a "false breakout". If you want to see an example of this occurrence just look at December of 2014 on this chart. You will see SPY broke above the $208ish level then came back down below it. The SPY was at $198.5ish in 4 days. The next thing SPY will have to do is close below the $208ish level. If this happens then SPY will break recent support. At this point SPY will probably be below the green uptrend line as well. Now things are beginning to get interesting. Let me say that this is the point where you should get concerned about where the market may be going. The $204.5ish level is the next support line to focus on. If the SPY is going to find support this is a logical place for it to happen. There are no guarantees but keep your eyes on this level. Let me put this hypothetical SPY decline into perspective. If SPY closes below the $204.5ish level, it will be about 3.5% below its highs. If SPY closes below about the $201.5ish level, it will be about 5% below the highs. Many are calling for a 5-10% correction. So at this point they would begin to be correct. The next support level the SPY would have to close below is the $198.50ish level. This would be a 6.5% decline. Below this level is a level in the mid 180's. These are not the areas where you want to be getting out. These are the levels where you want to try getting back in. Many big players will begin to lighten up on their longs if SPY goes below the $212ish level. When they lighten up, you need to be light on your investing feet too. It would be a good idea to raise some cash at that point. With each support level that is lost, the big players will sell more. This will push the market lower. What is their goal? It should match yours. Simply to lose less, have cash available to buy back shares at some lower price, and make more money on the way back up.
AMEX:SPY
by TheTrendLineInvestor