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"Scenario B" for Potential Bearish of Broadening WedgeThe 1st scenario is Broadening Wedge with rebound and break resistance, and then raise to another record with possible to break $2700 first. In this "scenario B" , I try to make some exception for the resistance. Concern the resistance is too strong after the rebound, therefore we will find the correction until it break the support. After that we will find some retrace or swing high about 50% of last wave, and continue with the pressure to 2614 which is known as point B or point 2. After the dip correction, please becareful with new demand probably will push the price for another uptrend. Well at least it corrected first before making new high on NFP next friday, right?
OANDA:XAUUSD
by irpansupiandi
The Fair Value Gap (FVG)The term "fair value gap" is known by various names among price action traders, including imbalance, inefficiency, and liquidity void. But what do these imbalances mean? They arise when the forces of buying and selling exert considerable pressure, resulting in sharp and rapid price movements. On a chart, a Fair Value Gap appears as a three-candlestick pattern. In a bullish context, an FVG forms when the top wick of the first candlestick does not connect with the bottom wick of the third candlestick. Conversely, in a bearish scenario, the FVG is created when the bottom wick of the first candlestick fails to connect with the top wick of the third candlestick. The gap on the middle candlestick, created by the wicks of the first and third candlesticks, represents the Fair Value Gap. The concept of FVG trading is based on the idea that the market has a natural tendency to self-correct. These price discrepancies or inefficiencies are generally not sustainable over time, and the market often returns to these gaps before continuing in the same direction as the original impulsive move. What are the Types of Fair Value Gaps? 1. Bearish Fair Value Gap A bearish Fair Value Gap occurs when there is a space between the bottom wick of the first candlestick and the top wick of the third candlestick. This gap typically appears on the body of the middle candlestick, and the individual characteristics of each candlestick are not particularly important. What’s crucial in a bearish scenario is that the gap on the middle candlestick results from the wicks of the surrounding candlesticks not connecting. 2. Bullish Fair Value Gap A bullish Fair Value Gap occurs when the top wick of the first candlestick does not connect with the bottom wick of the third candlestick. In this case, the specific direction of each candlestick is not as important. What really matters is that there is a gap in the middle candlestick, where the wicks of the first and third candlesticks have not linked. 3. Inverse Fair Value Gap An Inverse Fair Value Gap is an FVG that has lost its validity in one direction but remains significant enough to influence price movement in the opposite direction. For example, a bullish FVG is deemed invalid if it fails to act as a demand zone. However, it then transforms into an inverse bearish FVG, which may serve as a supply zone capable of holding the price. 4. Implied Fair Value Gap The Implied Fair Value Gap is also a three-candlestick pattern, but it does not feature a gap on the middle candlestick, which is why it’s called an “implied FVG.” Instead, it consists of a larger middle candle flanked by two relatively long wicks from the first and third candles. The “gap” is defined by marking the midpoint of the wick of the first candlestick that touches the middle candle and the midpoint of the wick of the third candle that also touches the middle candle. These two midpoints create the gap. Here are some factors that can lead to the formation of fair value gaps: 1. Economic Data Releases Key economic data releases, such as changes in interest rates or unemployment statistics, can similarly create imbalances. If the data surprises the market, it can trigger a swift price movement in one direction, resulting in a gap. 2. Sudden News Events Unexpected news that significantly affects market sentiment can lead to a rapid increase in buying or selling activity, resulting in a gap as prices adjust to the new information. For instance, if a company unexpectedly reports strong earnings, its stock price may surge, creating a gap on the chart. 3. Market Openings or Closings Gaps may form during periods of low liquidity, such as at market openings or closings. With fewer market participants, even a small amount of buying or selling can cause a noticeable price jump that isn’t quickly countered. 4. Large Institutional Trades Significant trades by institutional investors can also lead to fair value gaps (FVGs). When a hedge fund or financial institution executes a large buy or sell order, it can overwhelm the existing order book, causing a rapid price shift and leaving a gap behind. 5. Weekend Gaps FVG's are often observed between the close on Friday and the open on Monday, reflecting news or events that occurred over the weekend. KEY POINTS TO KNOW - Fair Value Gaps (FVGs) are powerful tools traders use to identify market imbalances and inefficiencies. - FVGs occur when buying or selling pressure leads to significant price movements, leaving behind gaps on price charts. - FVGs can be identified through technical analysis involving the analysis of candlestick patterns and price chart patterns. - Traders can categorize FVGs into two types: Undervalued FVGs, where prices are lower than fair value, and Overrated FVGs, where prices are higher.
Editors' picks
Education
by TaylorDeMario
4
Gold Market Breakdown: Unfolding Patterns and Key Price MovementGood morning Traders, Trust you are doing great. Allow me to continue my storyline of the Gold market. In my previous analysis of the gold market, I identified two unfolding patterns with similar directional implications. While one pattern was invalidated, the other continues to develop as expected. I projected an appreciation in the gold price from 2370.930 to the 2430-2442 region, which has materialized with gold rallying to 2425.540, where it is currently encountering resistance. Additionally, a new bearish Gartley pattern has emerged, suggesting a potential decline towards 2314.318 to complete the D-leg of the earlier identified unfolding bullish Gartley pattern. Supporting this bearish outlook are the following factors: 1. The current gold price has met the minimum requirement for leg C of the larger unfolding Gartley pattern, even though there are still room to the upside, but it shouldn't exceed 2436.857. 2. A fully formed smaller bearish Gartley pattern has been observed on the H1 timeframe. 3. The price is currently at a key supply zone that coincides with a critical level in our analysis. Given these observations, I anticipate a significant drop in the gold price. However, if the price exceeds the maximum harmonic level for the formation of leg C of the unfolding bullish Gartley pattern at 2436.857, this outlook will be invalidated. Cheers and happy trading!!!
OANDA:XAUUSDShort
by Samuel124
"GBP/USD Analysis: Anticipating Bearish Momentum (Read Caption)1. GBP/USD Technical Analysis: - Sell Entry: Targeting a decline from 1.26503 to 1.25890. - Retest Anticipation: Expecting a revisit of 1.26640 before downward movement. - Risk Management: Set stop-loss above retest level to mitigate reversal risk. - Take Profit: Aim for 1.25890, but adapt to market conditions and price action. 2. Fundamental Analysis: - Consider recent and upcoming US economic data releases impacting the US Dollar strength, thereby influencing GBP/USD movements. 3. Trading Strategies: - Confirmation: Wait for confirmation of retest level acting as resistance before entering the trade. - Risk Management: Employ suitable risk management strategies like setting stop-loss orders and managing position sizes. - Stay Updated: Keep abreast of news and events affecting both the US and UK economies, as they can influence GBP/USD dynamics. 4. Trading Psychology: - Exercise Patience: Wait for the optimal entry and confirmation signals. - Emotion Control: Manage emotions like fear and greed by adhering to the trading plan. 5. Additional Analysis: - DXY Analysis: Continuously monitor the US Dollar Index to gauge overall USD strength, offering insights into GBP/USD movements. --- If you like this analyse please boost comment and follow thanks for support.
Short
by Forex_Signals_io
Trade_setup _ 20% upside potential in BF Utilities.BF utilities is a Kalyani Group owned company that engages in infrastructure and power generation through wind mill technology. The chart shows the stock giving a successful breakout from: i. Inverse head and shoulder pattern. ii. Horizontal resistance zone(635-655) The stock closed above both these significant resistances with a spike up in volume and a Bullish 'Marubozu' candlestick. The target for the Inverse head and shoulder patterns projects to a target almost close to the previous swing high(around 800-815 zone). On the downside 630 should make a good area to consider for a SL on this stock. *Note- Views expressed here are based on personal opinions/observations. Please do your own research/analysis before taking any financial positions.
NSE:BFUTILITIELong
by neeraj_2_sharma
EURUSD wait for a bearish breakdown...EURUSD The price made a bearish breakout of the contracting structure, the price is currently at the support area, if price manages to break below the support area If price stays below support/resistance structure I expect the price to move lower.. Trade Wisely *The content on this analysis is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.
Short
by Stargazer_fx
18
Decoding Market Patterns:10 Essential Price Patterns Every TradeIn the intricate world of trading, price patterns are the footprints left by market sentiment. Understanding these patterns is like deciphering a complex code, revealing insights into potential market movements. Today we will explore 10 essential price patterns every trader should recognize. Each pattern is a chapter in the dynamic story of market behavior, offering opportunities to identify trends, reversals, and strategic entry or exit points. 1. Bull Flag: The Flagbearer of Continuation A Bull Flag is a continuation pattern, often seen in strong uptrends. It resembles a flagpole (the initial price spike) followed by a rectangular flag (consolidation phase). When the price breaks above the upper boundary of the flag, it signals a potential continuation of the uptrend. 2. Bear Flag: The Bearish Counterpart The Bear Flag is the opposite of the Bull Flag. It appears in downtrends, with a flagpole representing the initial price drop followed by a consolidation period. When the price breaches the lower boundary of the flag, it indicates a potential continuation of the downtrend. 3. Head and Shoulders: The Classic Trend Reversal The Head and Shoulders pattern is a powerful reversal indicator. It consists of three peaks – the central peak (head) is higher than the surrounding peaks (shoulders). When the price drops below the neckline (a line drawn through the lowest points of the shoulders), it suggests a potential trend reversal from bullish to bearish. 4. Inverse Head and Shoulders: The Bullish Resurgence The Inverse Head and Shoulders pattern is the bullish counterpart of the Head and Shoulders. It occurs after a downtrend and indicates a potential reversal to an uptrend. The pattern consists of three troughs – the central trough (head) is lower than the surrounding troughs (shoulders). When the price rises above the neckline, it signals a potential shift from bearish to bullish. The cool thing about chat patterns is that they are everywhere. You often see many different chart patterns on a singular chart, or smaller patterns that are a part of a larger pattern. The tricky part is finding them and appropriately identifying them. 5. Double Top: The Bearish Reversal Duo A Double Top pattern occurs after an uptrend and signals a potential reversal. It consists of two peaks at nearly the same price level, indicating a struggle to push the price higher. When the price falls below the trough between the peaks, it suggests a possible shift from bullish to bearish. 6. Double Bottom: The Bullish Reversal Duo The Double Bottom is the bullish counterpart of the Double Top. It occurs after a downtrend and signals a potential reversal to an uptrend. It consists of two troughs at nearly the same price level, indicating a struggle to push the price lower. When the price rises above the peak between the troughs, it suggests a potential shift from bearish to bullish. 7. Rising Wedge: The Rising Price Constrictor A Rising Wedge is a bearish continuation or reversal pattern. It can form during a downtrend or in an uptrend where buying pressure becomes exhausted. The wedge is characterized by converging trend lines that slope upward. While the price may make higher highs and higher lows, the pattern tightens, indicating weakening momentum. When the price breaks below the lower trendline, it suggests a potential continuation of the downtrend or reversal of an uptrend. Rising Wedge Reversal Example: Rising Wedge Continuation Example: 8. Falling Wedge: The Falling Price Constrictor The Falling Wedge is the bullish counterpart of the Rising Wedge. It forms during an uptrend or a downtrend, characterized by converging trend lines that slope downward. While the price may make lower highs and lower lows, the pattern tightens, indicating weakening selling pressure. When the price breaks above the upper trendline, it suggests a potential continuation of the uptrend. Falling Wedge Continuation Example: Falling Wedge Reversal Example: 9. Symmetrical Triangle: The Balance of Bulls and Bears A Symmetrical Triangle is a neutral pattern that forms during a trend, indicating a period of consolidation. It is characterized by converging trend lines that slope in opposite directions. When the price breaks above the upper trendline, it signals a potential bullish move, and when it breaks below the lower trendline, it signals a potential bearish move. 10. Pennant: The Brief Consolidation Pause A Pennant is a continuation pattern that forms after a strong price movement. It resembles a small symmetrical triangle, indicating a brief consolidation before the previous trend resumes. When the price breaks above the upper boundary, it suggests a potential bullish continuation, and when it breaks below the lower boundary, it suggests a potential bearish continuation. Important Thing To Consider: Price patterns are a tool that if practiced and executed properly can be a great asset for any trader. There are a few things that all traders should keep in mind when using price patterns to make trading decisions. Context is critical: Price patterns don't exist in isolation; they occur within the context of larger market trends. It's essential to consider the prevailing market conditions, including the overall trend (bullish, bearish, or sideways), volume trends, and recent price action. Confirmation is Key: While recognizing a price pattern is an important skill, relying solely on its formation might lead to premature or false trades. Traders should always wait for confirmation signals before taking action. Confirmation can come in the form of a price breakout above a pattern's resistance level, a significant increase in trading volume confirming the pattern's direction, or additional technical indicators aligning with the pattern's signal. Waiting for confirmation helps traders filter out false signals, reducing the risk of entering trades based solely on pattern Risk management is paramount: No pattern, regardless of its historical accuracy, guarantees a profitable trade. Traders must always implement proper risk management strategies, including setting stop-loss orders and defining acceptable levels of risk per trade as a percentage of their trading capital. Risk management ensures that even if a trade based on a price pattern fails to materialize as expected, the impact on the trader's overall portfolio remains manageable. Practice, practice, practice: Identifying price patterns is a skill that improves with practice and experience. Traders should dedicate time to studying historical charts, both in live markets and during backtesting. Regularly practicing pattern charting enhances the ability to spot patterns quickly and accurately. TradingView offers a great set of tools to help anyone get started by offering a full line of automated pattern recognition indicators for educational and research use. Utilizing these automated pattern recognition indicators is a great way to visualize patterns in the real world as patterns are often less clean than textbook examples. Recognizing these price patterns equips traders with a valuable skill set for navigating a dynamic market. However, it's vital to remember that patterns, like pieces of a puzzle, offer meaningful insights when combined with other indicators and thorough analysis. No single pattern guarantees profits, and each should be evaluated within the context of the broader market conditions. By integrating pattern recognition into a holistic trading strategy, traders can unlock the door to more informed, confident, and strategic trading decisions. Happy trading! Ben with LeafAlgo
Editors' picks
NASDAQ:NVDAEducation
by LeafAlgo
19