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Channelbreak

GBPUSD Price In A ChannelGBPUSD price action is now very sideways and a clear channel has formed which is around 150pips in range. Looking at price today, I can see it is now back at the 1.26500 resistance. There are 2 potential trades here, if price rejects this zone and forms another high then shorting should work well. Alternatively, if this 1.26500 resistance is broken then a retest and long trade could prove profitable. I personally will look for a 4hr candle break or rejection before entering a position in either direction.
Short
by UnknownUnicorn772665
4
AAPLAAPL seems to have been one of the main catalysts in yesterday's surprise market dump. AAPL has been trading in a bullish channel since April, going from the mid-230s to almost 400. Along the RSI, AAPL has lately been a little overbought but maintaining well. That changed today when a panic sell forced it tumbling, wiping out almost the entire month's gains. The RSI being as high as it was, along with the MACD crossing below the signal line may have also provided some reasoning for shareholders to sell aside from news impacting the overall market. Additionally, after today's close, the ADX has begun to move downward. When the ADX is above 20, it indicates that the stock is forming a trend (typically as the ADX moves up the stock is in an uptrend). As we can see in AAPL's case, it is now starting to move down. This tells us the AAPL's trend may be starting to lose its strength and begin a downtrend before possibly falling back under 20 and having no trend at all. Should the indicators continue to keep at the rate they are, AAPL should look to consolidate and possibly move further down. However, earnings for AAPL's ER is just around the corner, and some further volatility may be in store.
NASDAQ:AAPL
by nmatto
USDCHF - Understanding Extreme Areas in a ChannelHi Traders! The market is in a Downtrend. As you can see we here drawed three Parallel Channels. Let's go into it: The Parallel Channel with the most touches is the (purple) one in the middle. This is our "main" Channel, which is respected by many Traders. It is the most valuable. However, we also have to other Parallel Channels. Outside the "neutral Area" we had some False Breakouts. The market broke out, but came in again quickly. Yes, you can extend the "main" Channel to the highest and lowest Points so it is only one Channel. It'll be still valid. But we want to share with you the secrets: You can here identify "oversold" and "overbought" areas - such as at the RSI-Indicator. The Upper Channel starts from the Top of the "main" Channel and goes to the highest Points; and vice versa for the Lower Channel. When the Price reaches the Upper or Lower Channel you can expect a potential Reversal. Let's come to the idea, which has less to do with Parallel Channels. Now the Market is at an important Resistance. Because of the Pressure the market is giving to the Resistance, it won't be able to hold. The idea is to trade the Breakout towards the daily Resistance. It is the last Swing Low of the daily Price. We recommend to trade the Breakout with a Retest. Thanks and successful Trading :)!
Short
by swissmoneymakers
Thought on ETH/USD??Great Rising trader! ETHUSD is looking to have some drawback to the key area on my chart. I expect price to reach the key area, and rise for a nice profit on this beautiful Saturday! If you take a look at my chart on the daily time frame price broke out of the ascending channel that it was in, and moved towards the bears. This is just a thought that I am sharing ; what do you guys think will happen? I am going to set a sell stop or buy stop according to what price does, and ill be updating my post as everything unfolds. Enjoy the rest of your morning! Do me a favor and Like the post, and also leave a comment if your also trading ETH/USD this weekend. ****LOBFX Master Educator: Christian Jones IG: CM.J11 Facebook: Christian Jones *message me here
BITSTAMP:ETHUSD
by lobfxempire
USDJPY - Break of Parallel Channel - Risk 1$ to make 2.70$Hi Traders! The market is in a Midterm Uptrend (50MA). As you can see we here have a very central Trendline. It is very important to determine the future behavior of the market. So, we see that the market was pulling back every time downwards after it reached the Trendline. After the Breakout we are at the first time above this Trendline. It is testing this broken Trendline and doesn't get under it anymore. ( bullish signal ;) ) In addition it is starting to make higher highs and higher lows. These factors are all significant signals to determine a potential Trend Change! Thanks and successful Trading :)!
Short
by swissmoneymakers
EURUSD - Daily Channel Break from 2018! - MTFA with ScreenshotsHi Trading-Community! The market is in an Uptrend. Key Levels: Multiple Time Frame Analysis Resistance "Weekly Resistance" @ 1.17449 Daily Trendline + Parallel Channel - descending, resisting Parallel Channel "Retracement" - descending, resisting (completed) Rectangle "Consolidation Box" 200 Expontential Moving Average Category: - MTFA - Trendline Break - Channel Break - Trend Continuation - Bullish Flag Pattern Description: First of all, let's zoom out the chart and see the bigger picture. That can help us to identify in which stage we are: This is the daily Timeframe. Here we can see a clear Parallel Channel. In between them there are some other valuable Trendlines. These Trendlines are Guidelines for Buyers and Sellers to identify the cheapest and the most expensive Prices. Pay attention to the start time: This Channel is valid since March 2018! The upper and lower Levels are the strongest Levels and that is where we are now: We are now at the Upper Trendline and expecting big movements coming. Why is the market behaving differently now? As mentioned before, we are at the extreme and normally the market would fall down and leave the "Overbought"-Area. But at this moment the price is just consolidating near the Upper Trendline. That means, that there are Buyers at the Upper Trendline who are still buying - of course a suspicious thing. When the Buyers are buying there, this price isn't "expensive" anymore. Sellers are trying to push the price lower, but they aren't successful. Let's look at our normal H4-Chart: You can see one Up-Movement, than a Retracement in a "Flag"-Shape (descending Parallel Channel). The price even left that Channel and is now at the Daily Trendline in a Consolidation Box. When the Breakout occurs, the Bullish Flag Pattern would be valid. And there is a strong bullish indication on the lower Timeframe too: The market is making higher highs here. In addition, it is consolidating at Resistance. The Entry Trigger is the Retest of the Breakout. Our SL is under the last Swing Low. The TP is at the Weekly Resistance. We recommend to trade the Breakout with a Retest! Thanks and successful Trading :)!
Long
by swissmoneymakers
1
Hit on the ground again!As I had forecasted in the related idea the channel break came true, and I made a comment in the idea "Here is the breakout retest" which target was a little bit above 1.25. If I am on the truck then the decline should accelerate soon. One two, one two has been built up so the momentum must come. There is two trading strategy on the chart so the juncture is created. If the momentum won't come and go above 1.25 then the maybe the retest is complicated. Important Always use stop order, cutting losses, this is one of the essential elements of your risk management and if you would like to be an independent investor then you must be the master of risk management. Disclaimer Reserved the right to make changes the content on this analysis at any time without notice and is provided for the sole purpose of assisting traders to make independent investment decisions.
Short
by MoodandMarkets
RUSSELL 2000 INDEX BEAR FLAG SHORTBear Flags are Channel Ranges and they are repeatable trading chart patterns. Bear Flag chart patterns will have a directional bias depending on the previous incoming trend (Short). Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
CME_MINI:RTY1!Short
by Tradingstrategyguides
LITECOIN 1D BEAR FLAGBear Flags are a range pattern and they are a repeatable trading chart patterns. Bear Flag chart patterns will have a directional bias depending on the previous incoming trend (short trade). Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade.
COINBASE:LTCUSDShort
by Tradingstrategyguides
S&P 500 E-MINI FUTURES BEAR FLAG SHORT TRADEBear Flags are a Range pattern which is a repeatable trading chart patterns. Bear Flag chart patterns will have a directional bias depending on the previous incoming trend (short trade). Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
CME_MINI:ES1!Short
by Tradingstrategyguides
AUDUSD 1D BEAR FLAG SHORT TRADEBear Flags are Channel Range patterns that are repeatable trading chart patterns. Bear Flag chart patterns will have a directional bias depending on the previous incoming trend (short). Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern. What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart). Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place. Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement. When you see descending Volume bars and descending ATR line (which indicates volatility) this shows a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern. Trade Management after there is a breakout candle close. 1 - Position size (compare volume bar to volume ma line). a - Breakout candle must be 100% of average volume for a full position size. b - If 75% of average volume then ½ position size. (To find 75% of Volume look at the charts volume settings – divide smaller # into larger # = 75%+) 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP will be 1 x ATR. 5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price. 6 - When 1st TP hit – move 2nd trade SL to breakeven. 7 - Adjust the 2nd trade SL to follow price. *8 – After Breakout candle – if price closes back into chart pattern close trade *9 - When breakout candle is more than 1 ATR from breakout candle open. a - Enter 1st trade at candle close with ½ position size. b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open. c – Price should pullback to that pending limit order for 2nd trade. d – If Price returns back into chart pattern close trade before SL is hit.
Short
by Tradingstrategyguides
5
TMUS LONG idea. BUT! Against Double TOP!Very strong set-up in the TMUS Stock Market today. Let´s analyze that! T-Mobile went up with confidence, but then, because of the COVID-19 collapsed. What is interesting, however, TMUS recovered very quickly and is again above the channel, which was respected for a long time. Whether you like it or not, IT´S A LONG SIGN! INSIDERS are those guys, who stopped the falling market. Why would you buy your own company if you don´t believe that its Stocks will go higher? Price Action brings nice patterns such as trend-lines, pinbar, rejection, and double top. Why am I thinking about Long trade against the DOUBLE TOP? The answer is simple - there are more signs that confirm Long SETUP. And that is the reality of trading. You will always have something you don't like. The decision is yours. Good trading, Jakub FINEIGHT
AMEX:SPYLong
by Fineight