IWM looking vulnerableThe Russel 2000 closed below the daily 200 MA today.
It's never a good sign for the breadth in the market when the Russel starts breaking down.
I think there's a strong likelhood we continue to breakdown, based off todays IWM price action.
Small caps got rejected today at the pre market high and just kept selling all day. What makes thing price action bad is the fact that we closed below the pre market low and the daily 200 MA.
The volume on todays close was higher than usual which also indicates some serious selling pressure.
A clear Head & shoulders pattern is apparent on the chart, if this triggers...watch out below.
CAPS
🟩 Smaller stocks are showing valueThe small caps are getting to levels when they show value based on earning yields nad based on relative strenghts.
These are the levels we saw before when the Russell 1000 started outperform the Russell 2000. Hence this is showing a potential broadening of the rally and give confidence to traders to not stick to the Mega Caps (FAANGS).
Rather, this is showing traders, that as long as stocks setup, you can stay synced with the theme.
TVC:RUT and TVC:RUI
DXY is surrounded by CAPS patterns.Hi guys
If you heard about caps on price patterns, you could see this parameter in DXY that happened frequently :)
Also, you have to switch between the timeframe to find the suitable one.
CAPS on Price is one of the most profitable patterns in the RTM method.
I suggest learning more about it.
Sincerely
Hosein Poursaei
XAU/USD We are reaching the Bullish FTR zone in weekly timeframHi guys
In this post, I will analyze the XAU/USD chart by RTM method in the weekly timeframe. I suggest you learn this method which was developed by If Myante and his friends and is famous for its accuracy and high risk-reward ratio.
If we look carefully at the chart of the Gold, we could see the evident Bullish FTR (failure to return) between the range of 1770 to 1800.
First of all, the price had a resistance surface in 1807 but we can see that this surface engulfed later (ENG point). After that, the price failed to return to its bearish downtrend and the price jumped to around 1960. so if the price makes a pullback to that FTR Surface, we could see a bullish reaction.
Also, we could see the Caps on price which was shown by a red border. Caps on price structure are usually RBR (RALLY BASE RALLY) or DBD (DROP BASE DROP) structures which in the second phase we could see a base an FTR or its better to say FL (flag limit). When the price reaches this surface, we expect a bearish reaction.
So we expect a bullish reaction from the range of 1770 to 1800 with the first target of 1860 and 1950 but we have to see the trigger in the lower timeframe in order to trade when the price reached to the selected zone.
Don't forget to check the fundamental reasons.
Sincerely
Hosein Poursaei
RTM CAPS OR CAN CAN PATTERN ON XAUUSDHI GUYS
ive think that rtm pattern caps or cancan on xauusd has created on 1h time frame
PRICE HAS TOUCHED THE DOWN LINE OF ORIGIN OF ENGULF TRIANGLE THAT WE CAN GO ON SHORT
THE UPPER LINE OF ORIGIN OF ENGULF TRIANGLE THAT WE CAN SET OUR SL
OUR TP WILL BE 1/3 RISK/REWARD
OPEN : 1897.69
SL : 1902.6
TP : 1/3 RISK/ REWARD
WHAT DO YOU THINK ?
GBP/AUD short setup on a Cap This trade is based on a Cap that can be seen best on the 1H. My prediction/Setup would be an entry at 1.66770 with my stop loss at 1.67477. My first Target will be at 1.65724 and my second target at 1.63601. Once My first target is hit i will move to Break even and and then possibly start locking in pips depending on how the market is reacting.
Upside potential for Rusell 2000 Index from Past PerformanceRecovery in U.S. show up slower than expecting, seeing from Jobless Claim report increased to 276,000 against analysis forecast median of 263,250 jobs which is a greater numbers than Feb 2016 report. However the incremental is still below 300,000 which is an acceptable rate. Counting from Jackson Hole Fed's meeting last week statement was given clear of timeline of interest rate increase in year 2017 which will be monitored every quarter and rate holding in Apr to June 2016 sending U.S. dollar index down towards end of statement. This resulting of sending stock market upwards DJIA approaching last height where it went before collapsing last round of trading. NASDAQ index has been booming upwards slope as well leaving where Biotech index laggard.
The Russell 2000 Index follows the trend if you look at the graph presenting from year 2000 to year 2016 highest record, at the moment of trading today vs last height giving 16.38% upside for trading area but why Russell 2000 index would recovery better than DJIA or those big caps. It is because the small caps index has more volatility and potential of company growth better than big caps. The company are new to the market seeing high potential of expanding market share and it normally not reacting plunged from market sentiment.
IWM could not renew 13-year uptrend and broke below 7-year trendSmall Caps (IWM) - It seems IWM is having a hard time making it back above the black line (13-year trendline) this week and closed right below the purple line (since-2009 trendline) today. Note that in early January IWM broke below the purple line for the first time and dropped a lot.