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Confluencetrading

BUY EURUSD. Not on interest rate holds but Indicator Signals. EURO zone held their interest rates on hold yesterday despite expectations of a rate cut for the zone. On the charts and there are 3; weekly, daily, 4hr. Weekly is a 38.2 fib price retracement to a buy zone and the continuation of higher prices. Daily chart is a recent bounce from a Buy order block triggering long bets for EURUSD. The 4HR chart is getting bullish reversal oversold signals on Stochastic's and RSI, which tend to be very reliable on 4HR charts and higher.
by Easy_Explosive_Trading
What Is Confluence in Trading, and How Can You Use It?What Is Confluence in Trading, and How Can You Use It? Confluence in trading involves the strategic alignment of multiple signals to validate trade decisions. This method is supposed to enhance the reliability of trade signals and allows traders to filter out low-probability outcomes. This article delves into the key components of confluence trading, its practical applications, implementation, and common mistakes. Confluence: Definition in Trading Confluence in trading refers to the alignment of multiple indicators or analysis tools to get stronger signals for decision-making. By combining various technical indicators, chart patterns, and support and resistance levels, traders can filter out low-probability setups and focus on higher-probability outcomes. For instance, confluence can involve using a moving average crossover, a support level, and an RSI reading below 30 to identify a potential buying opportunity. This multi-faceted approach helps validate the trade signal and potentially increases the likelihood of favourable outcomes​. The essence of confluence in forex trading and other assets is to provide a comprehensive view of the market, reducing false signals and offering a more reliable basis for decision-making. It acts as a confirmation mechanism, enhancing the accuracy of technical analysis and helping traders avoid overtrading by focusing only on trades with multiple supporting factors​. Key Components of Confluence in Trading Confluence in trading can be sought from multiple sources, including technical indicators, chart patterns, support/resistance levels, and other analytical tools. Some of the common confluence tools include: Indicator Signals Technical indicators are essential in confluence trading. Indicators like moving averages, Bollinger Bands, Relative Strength Index (RSI), Average Directional Index (ADX), and VWAP can confirm the same trading signal, potentially increasing the likelihood of an effective trade. For instance, a bullish signal from the RSI and ADX’s signal of the solid trend can provide a stronger confirmation for entering a trade than relying on a single indicator​. Traders can discover a wealth of confluence indicators and start trading in over 600 markets at FXOpen’s free TickTrader trading platform. Chart and Candlestick Patterns Chart patterns, such as cup and handle, rounding top, and diamond, are among key tools in identifying potential market movements. Candlestick patterns like san-ku, tweezer top and bottom, and hook reversal also play a crucial role. These patterns provide robust confluence points when they align with other technical signals. For example, a bullish san-ku pattern at a support level can indicate a buy signal​. Support and Resistance Levels Support and resistance levels, including horizontal lines, trendlines, and Fibonacci retracement levels, are foundational elements in technical analysis. These levels indicate where the price is likely to encounter obstacles. When a Fibonacci retracement level aligns with a horizontal support line and a rising trendline, it forms a strong point of confluence, suggesting a potential reversal or continuation of the trend​. Trend Analysis Analysing the overall market trend offers key insights into market direction. Traders often use trendlines or examine the sequence of highs and lows forming the trend to identify the direction of the market. Combining trend analysis with other technical tools, such as indicators or support/resistance levels, can potentially enhance the effectiveness of trade signals. For instance, trading in the direction of a confirmed trend and using confluence from other indicators might improve trade effectiveness​. Higher-Timeframe Analysis Higher-timeframe analysis involves looking at longer timeframes to validate signals seen on shorter timeframes. For example, a trend observed on a daily chart can provide context and validation for signals on an hourly chart. This method helps ensure that trades are aligned with the broader market trend, potentially reducing the chances of false signals. Fundamental Analysis Fundamental analysis, which includes economic indicators such as GDP, interest rates, and employment data, can be combined with technical analysis to strengthen trade signals. For instance, if technical indicators suggest a bullish trend and fundamental data supports economic growth, the confluence of these factors can provide a more reliable trade setup​. Time of Day Market activity varies throughout the day, with certain periods experiencing higher volatility and liquidity. Understanding the impact of different trading sessions can help traders identify optimal times for trading. For instance, false signals may occur during quiet periods of the market when prices are most likely to range, while more active session overlaps can be seen as offering stronger and timely signals. On the chart above, the New York session closed at 21:00 GMT (summer time) but the Sydney session didn't start. Therefore, the price of the AUD/USD pair ranged from 21:00 to 22:00. Other Considerations Ultimately, confluence isn't limited to the mentioned categories. Any analytical tool that a trader finds reliable can be integrated into their confluence strategy, including sentiment, positioning (for currencies, stocks, and indices, this can be derived from Commitment of Traders data), bull/bear traps, and Smart Money Concepts. The key is to ensure that the signals from different tools align and reinforce each other to create a robust and reliable trading setup. Practical Applications of Confluence in Trading Using confluence in trading is essentially about finding the optimal point where a manageable number of signals align, allowing for clear and quick decision-making. While leveraging too many indicators can result in conflicting signals and missed opportunities, relying on too few might not provide enough confirmation. The key is to develop a deep understanding of a few selected confluence factors that complement each other. Optimising Confluence Factors An ideal confluence setup uses a mix of different types of signals, such as those described in the categories above. For instance, a trader might focus on key support and resistance levels, combine them with an indicator or fundamental analysis, and understand the broader trend using higher timeframe analysis. However, this also applies to indicators; most traders typically rely on two or three indicators of different types, such as a momentum indicator (e.g., RSI), a trend indicator (e.g., moving averages), and a volume-based indicator (e.g., On-Balance Volume). Such an approach can provide a balanced and effective strategy by seeking confirmation from varied sources and reducing the risk of conflicting signals. Creating a Foundation for Confluence Trading In practice, it is down to the individual trader to determine their ideal mix of confluence factors. However, to form an effective basis for confluence trading, it’s wise to prioritise three specific factors before considering more timely aspects like chart patterns and indicator signals. 1. Top-Down Analysis: Markets are fractal, meaning that a lower timeframe trend is part of a higher timeframe trend. Using top-down analysis, where traders start from the highest timeframe and work downwards to the one most relevant to their trading, they can understand the broader market context and which higher timeframe trends may be directing lower timeframe trends. This holistic approach can ensure a trader stays on the right side of the market, following trends rather than fighting them. 2. Support and Resistance Levels: Nearly all markets naturally move between support and resistance levels since historical areas where prices found a bottom or top are likely to influence future price movements. This means that traders usually prioritise trades in areas of support or resistance as a basis for trades instead of treating these levels as simply another confluence factor. 3. Fundamental Analysis: Markets also move as fundamentals evolve. While it’s possible to create a strategy using just technical analysis, fundamentals will nearly always drive a currency, stock, or other asset’s price movements in the long run. Therefore, understanding the fundamental direction of an asset can form the basis of a trade that can then be confirmed with other confluence factors. Even if it isn’t the foundation of a trade, aligning yourself with the trend direction indicated by fundamental factors can help boost your chances of effective trading. How to Get Started Using Confluence in Trading To begin using confluence in trading, traders choose a few complementary forms of analysis to build out their strategy. For instance, combining top-down analysis, identifying support and resistance levels, and incorporating fundamental analysis or using two or three technical indicators can create a balanced approach without being overwhelming. Observing other traders' strategies can also provide valuable insights and ideas. Defining Entry and Exit Signals Once the strategy components are chosen, traders need to define the conditions that should be met before considering entry and exit points. For example, a bullish trade might require a higher timeframe uptrend, a pullback to a support level, and confirming signals from a technical indicator. These factors alone may be enough for a trade, while some may prefer to wait for a specific entry signal, such as a bullish candlestick pattern, to initiate the trade. It’s also important to consider and implement risk management practices to potentially limit losses. Backtesting and Forward Testing The next step involves backtesting and forward-testing the strategy. Backtesting can be performed using tools like TradingView's bar replay feature, allowing traders to simulate trades on historical data. While technical aspects can be thoroughly backtested, incorporating fundamental analysis in backtesting can be more challenging. When a trader is confident that their strategy shows positive results over a substantial number of trades (typically 50 to 100), they proceed to forward testing. Forward testing involves executing trades in real time using a demo account, which poses no risk to actual capital. This stage helps traders understand how their strategy performs under real market conditions, including factors like slippage and liquidity. It also allows them to gauge their emotional responses and discipline during live trading. If the strategy proves too complex or requires refinement, traders can make necessary adjustments before risking real money. Common Mistakes to Avoid When Using Confluence Strategy Confluence trading can enhance trading strategies by combining multiple signals to validate trade setups. However, traders must be cautious to avoid common pitfalls that can undermine the effectiveness of this approach. 1. Overcomplicating Analysis Using too many tools can lead to analysis paralysis, where conflicting signals cause confusion and indecision. It's best to focus on a few complementary tools to streamline analysis and maintain clarity in decision-making. 2. Ignoring Market Context Relying solely on technical indicators without considering the broader market context can lead to false signals. To make well-rounded trading decisions, it's essential to analyse the overall trend, support and resistance levels, and other relevant market conditions. 3. Neglecting Fundamental Analysis While technical analysis is powerful, ignoring fundamental factors can result in missed opportunities or unexpected losses. Combining technical signals with fundamental analysis, such as economic data and news, provides a more comprehensive view of the market. 4. Overtrading Trading too frequently, often in an attempt to recover losses or maximise returns, can lead to impulsive decisions and increased risk. Focusing on quality over quantity and sticking to the specific confluence factors you’ve outlined helps maintain discipline and improve the odds of the long-term effectiveness of your trading approach. 5. Poor Risk Management No matter how many confluence factors align, they will inevitably fail at some point—no strategy is 100% correct. It’s, therefore, crucial to establish and adhere to a risk management plan, including setting appropriate stop-loss levels and position sizes to potentially protect capital. The Bottom Line Mastering confluence in trading enhances decision-making and potentially increases the likelihood of effective trades. By integrating multiple signals and robust analysis, traders might achieve more consistent results. Start applying these strategies today by opening an FXOpen account, where you can practise and refine your confluence techniques in over 600 markets with more than 1200 trading tools. FAQs What Is a Confluence in Trading? The confluence meaning in trading refers to the alignment of multiple technical indicators, chart patterns, and other analysis tools to confirm a trade signal. This approach potentially increases the probability of effective trades by validating signals from different sources, making trading decisions more reliable and robust. What Are the Factors of Confluence in Trading? Factors of confluence in trading include technical indicators like moving averages and RSI, chart patterns such as a diamond, support and resistance levels, trendlines, and fundamental analysis. By combining these elements, traders can identify high-probability trade setups and potentially reduce the risk of false signals. What Is the Point of Confluence? A point of confluence is where multiple technical and fundamental indicators align, confirming a potential trade setup. This potentially increases the likelihood of an effective trade outcome, as it signals that various forms of analysis reflect the same market movement. What Is a Confluence Zone? A confluence zone is an area on a price chart where multiple technical indicators and analysis tools converge, creating a strong signal for potential price movement. These zones often mark significant support or resistance levels and provide traders with key entry and exit points. What Is the Confluence Trading Strategy? The confluence trading strategy involves combining different technical and fundamental analysis methods to validate trade signals. Traders look for areas where multiple indicators align, potentially enhancing the accuracy of their trades. This approach helps traders filter out low-probability setups and focus on high-probability opportunities, potentially improving overall trading performance. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
2
Mastering Trading ConfluenceIn the world of trading, success often hinges on making informed decisions based on reliable analysis. However, relying on a single indicator or tool can sometimes lead to false signals and missed opportunities. This is where the concept of trading confluence comes into play. Trading confluence refers to the alignment of multiple indicators, tools, or analysis techniques to confirm trading signals, thereby increasing the probability of a successful trade. 🔵𝚆𝙷𝙰𝚃 𝙸𝚂 𝚃𝚁𝙰𝙳𝙸𝙽𝙶 𝙲𝙾𝙽𝙵𝙻𝚄𝙴𝙽𝙲𝙴? Confluence in trading is the process of combining different technical analysis tools to identify high-probability trading opportunities. Instead of relying on a single indicator, traders look for areas where multiple indicators or strategies align, providing a stronger signal for entering or exiting a trade. These tools might include price action analysis, moving averages, Fibonacci retracements, support and resistance levels, or even fundamental analysis. When several tools point to the same conclusion, the signal is considered more robust, reducing the likelihood of false positives and improving the chances of a successful trade. 🔵𝚆𝙷𝚈 𝙸𝚂 𝙲𝙾𝙽𝙵𝙻𝚄𝙴𝙽𝙲𝙴 𝙸𝙼𝙿𝙾𝚁𝚃𝙰𝙽𝚃? The financial markets are complex, with numerous factors influencing price movements. Relying on a single indicator can lead to inconsistent results, as no indicator is infallible. By using confluence, traders can: Increase Confidence in Trade Decisions : When multiple indicators confirm the same signal, it provides traders with greater confidence to act on that signal, knowing that it is backed by various forms of analysis. Filter Out False Signals : Indicators sometimes produce false signals. By requiring alignment between different tools, confluence helps filter out these false positives, leading to more reliable trading decisions. Enhance Risk Management : Confluence allows traders to pinpoint more precise entry and exit points, which can lead to tighter stop-loss levels and better risk-reward ratios. This, in turn, can improve overall portfolio performance. 🔵𝙷𝙾𝚆 𝚃𝙾 𝚄𝚂𝙴 𝙲𝙾𝙽𝙵𝙻𝚄𝙴𝙽𝙲𝙴 𝙸𝙽 𝚃𝚁𝙰𝙳𝙸𝙽𝙶 To effectively use confluence in your trading strategy, consider the following steps: Select Complementary Indicators : Choose indicators that complement each other rather than those that replicate the same information. For example, combining a momentum indicator like the Relative Strength Index (RSI) with a trend-following indicator like a Moving Average can provide a more comprehensive view of market conditions. Identify Key Levels : Look for confluence at key levels such as support and resistance zones, Fibonacci retracement levels, or pivot points. When price action aligns with these levels and is confirmed by multiple indicators, it suggests a higher probability trade setup. Confluence of Chart Patterns and Oscillator One powerful example of confluence is when a chart pattern like Equal Highs (EQH) aligns with a momentum indicator such as the Stochastic RSI. This combination provides more confidence in determining the trend direction. When both the EQH pattern and Stochastic RSI align, such as when price hits equal highs while the Stochastic RSI shows overbought conditions, traders can have increased confidence in anticipating a trend reversal. Combining Same-Type Indicators - Using multiple trend-following indicators, such as the Aroon, Directional Movement Index (DMI), and the 50-period Simple Moving Average (SMA), can enhance your ability to identify strong trends and avoid false signals. These indicators complement each other by offering different perspectives on trend strength and direction. - Combining multiple mean reversion indicators can provide stronger signals for potential price reversals. This approach helps in identifying overbought or oversold conditions with greater confidence. Here are some ways to create confluence using mean reversion indicators: When multiple indicators align to show overbought or oversold conditions, it provides a stronger signal for a possible price reversal. However, it's important to remember that even with confluence, no indicator combination is foolproof, and proper risk management should always be employed. Use Multiple Time Frames : Analyzing confluence across different time frames can provide additional confirmation. For instance, if a bullish signal is confirmed on both the daily and hourly charts, it strengthens the case for entering a long position. Multiple timeframe analysis is a highly effective strategy in technical analysis, as it allows traders to see the broader picture of market trends and zoom into shorter-term price movements. One common approach is to apply a 50-period Simple Moving Average (SMA) across different timeframes, such as 3D, 1D, 12H, and 4H charts, to assess trend strength and direction. By combining these timeframes with the 50-period SMA, traders can assess whether the trend is aligned across different perspectives. For example, if the price is above the 50-SMA on the 3D and 1D charts but below it on the 4H chart, it might signal a short-term pullback within a larger uptrend. This confluence of trend analysis across multiple timeframes provides a more robust trading strategy. Combine Technical and Fundamental Analysis : While technical indicators are the primary tools for identifying confluence, integrating fundamental analysis (such as economic reports, earnings releases, or geopolitical events) can further validate your trading decisions. Practice Patience and Discipline : Trading confluence requires patience. It’s important not to force trades when indicators are not in alignment. Waiting for confluence signals can prevent impulsive trades and improve your long-term success rate. 🔵𝙻𝙸𝙼𝙸𝚃𝙰𝚃𝙸𝙾𝙽𝚂 𝙾𝙵 𝚃𝚁𝙰𝙳𝙸𝙽𝙶 𝙲𝙾𝙽𝙵𝙻𝚄𝙴𝙽𝙲𝙴 While trading confluence can significantly enhance your trading strategy, it’s important to acknowledge its limitations: Overfitting : Relying on too many indicators can lead to overfitting, where the analysis becomes too complex, and signals become rare or conflicting. It's essential to strike a balance and avoid excessive complexity. Subjectivity : Confluence can be somewhat subjective, as traders might interpret the alignment of indicators differently. Developing a consistent and disciplined approach to identifying confluence is key. Delayed Signals : Waiting for multiple indicators to align can sometimes result in missed opportunities, especially in fast-moving markets. Traders should be aware of the trade-off between signal reliability and timing. 🔵𝙲𝙾𝙽𝙲𝙻𝚄𝚂𝙸𝙾𝙽 Trading confluence is a powerful concept that can enhance the quality of your trading decisions by providing more reliable signals and reducing the risk of false positives. By combining complementary indicators, analyzing multiple time frames, and incorporating both technical and fundamental analysis, traders can increase their confidence and improve their overall performance. However, it’s important to remain mindful of the potential limitations and to apply confluence in a disciplined and balanced manner. By mastering trading confluence, you’ll be better equipped to navigate the complexities of the market and make informed decisions that align with your trading goals.
VANTAGE:SP500Education
by BigBeluga
3
AUD/USD Bears to Push Towards 50-Day SMA?Ahead of this week’s RBA meeting, the Australian dollar exhibits a potential bearish scenario versus the US dollar, with the monthly and daily charts indicating further softness for the AUD/USD currency pair. 50-Day SMA Demands Attention Since September 2022, buyers and sellers have squared off between two converging lines on the monthly scale, a movement sufficient to label this pattern as a symmetrical triangle (or coil). You will note that May shook hands with the structure's upper boundary and has triggered a moderate sell-off this month (down -0.6%). Aiding the upper limit of the coil is a layer of monthly resistance coming in at $0.6670 that’s complemented by the Relative Strength Index (RSI) continuing to navigate space south of the 50.00 centreline. There’s also plenty of scope for sellers to stretch their legs at current price on the monthly chart: support is not expected to make a show until as far south as $0.6390. Meanwhile, on the daily timeframe, resistance at $0.6690 has been a talking point since mid-May, withstanding three upside attempts. If sellers maintain their position this week and overthrow willing bids at the 50-day simple moving average (SMA) at $0.6583, this would unearth a possible bearish scenario towards the 200-day SMA at $0.6539 and neighbouring support coming in from $0.6502. H1 Confluence Given the space for sellers to make their way to the 50-day SMA at $0.6583 on the daily chart, technical studies lean in favour of further selling towards $0.66 on the H1 scale this week, followed by H1 support from $0.6580. Therefore, the area showing H1 resistance at $0.6622 converging with channel resistance (drawn from the high of $0.6704) and a trendline support-turned-resistance line (taken from the low of $0.6575) could be a zone sellers show interest in this week.
Short
by FPMarkets
Platinum Approaching Key SupportVersus the US dollar, Platinum is inching closer to a notable area of support after refreshing year-to-date highs of $1,095 last week. Having seen price action pencil in a clear uptrend since February this year, a test of support between $987 and $1,002 could have dip-buyers make a show. The support area consists of two horizontal support levels around $990, one of which represents a failed Quasimodo resistance (turned possible support), a descending support line, extended from the high of $1,013, a 38.2% Fibonacci retracement ratio and a 50.0% retracement ratio at $997 as well as a 100% projection ratio coming in from $987.
TVC:PLATINUMLong
by FPMarkets
Americas Car Mart Testing Multi-Year Demand Zone (Buy Zone)Hi guys! This is a MACRO Analysis on AMericas Car Mart (CRMT). Macro meaning larger timeframe aka the 2 week in this instance. Macro moves tend to speak louder than smaller timeframes like the 1 day for example when they start to move in price. I believe CRMT has come to an important area and poses a great trade setup in my opinion. If we look to Price action. Notice 2 Support trendlines outlined. These are MULTI Year Support zones. When price reached the trendlines, we ended up bouncing UP. Notice our current price indicated by Orange box. Our 2 support trendlines have converged. When 2 support trendlines meet it strengthens the Support. Also notice the 21 EMA (Purple moving average) -> We have been below this since Septemberish of 2023. Moves below 21 EMA especially on the 2 week pose for good Buy zones as well. So the combination of converging Support lines and being below 21 EMA = Good area to take positions Now notice the 2 indicators ive included. These are momentum indicators. STOCH RSI has crossed BULLISH. (where blue line moves above orange line) Momentum can pick up and start a move up once this crosses ABOVE the 20 lvl. MACD is currently below the 0 lvl. With the histogram bars changing from dark red to light red. This indicates a waning of bearish momentum. It is also attempting to create a higher low. All good signs. Look for a Bullish cross and green bars to show up. That will help drive prices up. A cross ABOVE 0 lvl would bring about massive moves up. Continue to monitor the indicators and price to stay above the Support zone indicated. __________________________________________________________________________________ Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again. Stay tuned for more updates on CRMT in the near future. If you have any questions, do reach out. Thank you again. DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
NASDAQ:CRMTLong
by SafofAllTrades
2 patterns converge in the same regionIn this trade, I'm taking a counter-trend approach, spiced up with a touch of adventure on my second target. The convergence of the Fib-3 Bat Pattern with the Deep Gartley Pattern setup is a remarkable alignment. The addition of RSI Divergence serves as the icing on the cake. Once the market reaches my first target, I'll be making the prudent move of shifting my stops to entry, securing the gains made thus far. May the market be in our favour!
Short
by RaynLim
FTM Major Breakout or Rejection Incoming?!?Lets take a look at this beautiful confluence on FTM. A confluence this clean from major pivot highs do not come around often and what I can say is that the smart thing to do at these levels would be to enter a short position with stop above the wick high. Some people might trade this as a potential breakout, with a stop loss 1% to 2% below entry while managing your position size isn't a terrible idea but the most probable outcome is for price to reject a little from here. Calculate Your Risk/Reward so you don't lose more than 1% of your account per trade. Every day the charts provide new information. You have to adjust or get REKT. Love it or hate it, hit that thumbs up and share your thoughts below! This is not financial advice. This is for educational purposes only.
by Navitility
USD/CAD HTF Bullish Confluence? Multiple Breakout OpportunitiesBullish Outlook In this post (Bearish Outlook and former post update below), I highlight the potential bullish confluence we’re seeing on multiple higher time frames. This HTF reversal could begin with the former strong support level that we broke through but could act as support again – this would create an extremely convincing Inverse H&S as our left shoulder has tons of liquidity already built up. Current Buy Trades: On the Mid Time frame (2hr) - If we do break out on the 2HR with a healthy retest and bullish CHoCH, we will reconsider for a potential IHS signal upward toward the mitigated HTF supply zone and attempt to create a Major CHoCH to the upside. On the higher Time Frame: we should keep an eye on the weekly and daily charts for pattern confluence and strong level breakouts. This potential confluence of the bullish flag and Inverse H&S on the weekly is showing strong signs as the selloff has been controlled within this channel and if we do see a breakout of channel and neckline, we could make our HTF move up. Confluence: If we do see some bullish structure start to form, we might see confluence on multiple time frames which would be a very bullish HTF signal: 1. 2HR – Bullish breakout of ascending triangle and CHoCH a. Subsequent BOS and LTF trade signal to upside. 2. Daily – Inverse H&S neckline retest and breakout a. Resistance to turn support 3. Weekly – Breakout of bullish flag upper channel and neckline of IH&S. LAST POST Summary and Update: (Bearish Outlook) As I mentioned in my previous post, on the higher time frame weekly chart we mitigated our demand zone and hit expected resistance at the top of our bearish channel and failed to make a higher high. We then smashed through a strong support level and created a major CHoCH. We just recently mitigated that higher time frame supply zone but failed to make a high so we are currently on the bearish path toward a new lower low. Our projected trade from last post (linked below) is still in play and awaiting its Choch signal. As we can see we have twice mitigated our LTF supply zone as I mentioned would occur in my previous post (linked below), and are awaiting an entrance signal via 2HR (MTF) CHoCH and subsequent 15min supply zone mitigation. Current 2HR Sell trade: We are now creating an ascending triangle and although typically a bullish signal, due to the HTF outlook, I’m looking for a potential liquidity grab from the upper resistance level and a fake out. If we do grab liquidity and see a strong move I’m looking to short this on the rejection of the triangle breakout.
Long
by ReigningTrades
Buyers need this liquidity. Multi-TF confluence short tradeEUR/CHF – 9.27 We are at the top of our HTF Supply zone where we are just breaking through the strong resistance at the top of a HTF symmetrical triangle. I’m not convinced of this breakout and am expecting this to be a liquidity pull above former structure. I see an opportunity here to short the liquidity grab and ride price back down into the triangle and toward required liquidity. Why I think it’s going down short term: 1. We just created a major CHoCH on the daily and have yet to mitigate the major demand and liquidity zone that it created below 2. That same demand zone is sitting at a HTF support level so it is the ultimate liquidity source for bulls 3. We also just broke out of and retested a MTF ascending wedge which typically indicates a reversal in trend 4. Rejected at major resistance above - lacking liquidity to push higher Good R:R trade opportunity considering we are at the top of potential reversal – LTF just made a CHoCH and we are awaiting a LTF Supply zone mitigation to enter our trade. There is also a bigger R:R opportunity for our TP2 which is the bottom of the triangle and another strong HTF support level. For this trade , we are awaiting a post-CHoCH reversal confirmation with a supply zone mitigation and LTF (5/1min) BOS Stop loss is above our MTF (2HR) supply zone TP1 at retest of upper triangle & HTF support level = 2.2 R:R TP2 at retest of lower triangle support = 4.9 R:R
Short
by ReigningTrades
6
JNUG- Gold is Going Higher ( LONG)Gold is rising and so also JNUG the triple-leveraged junior miner ETF which has components of miners that have the most to benefit from rising. On the daily chart, price dropped from a winter pivot high with a head and shoulders pattern into a trend down with a bounce off the lows in early March followed by a YTD pivot high in mid April followed by a trend down into the July 4th holiday where the reversal from the low into the current price movement is supported by the MTF RSI indicator showing both the low and high TF RSIs crossing the 50 level. The zero-lag MACD shows the histogram going negative to positive simultaneously with the K /D lines crossing from underneath and beginning to rise. Importantly the Lroentzian machine learning AI indicator using a variety of indicators and factors printed a buy signal earlier this same trading day. I will go long in a swing trade expectant of great profit. I can see that price is approaching the long term mean VWAP and has crossed over the POC line of the lower high volume area. The target of 43.2 is the POC line of the upper high volume area confluent with the first standard deviation above that mean VWAP and also the neckline of the H & S this past winter. The analysis is strong from the confluences and so expectant of 15-20% profit.
AMEX:JNUGLong
by AwesomeAvani
Aggressive Buying🔍 Current Situation: No favourable buying opportunity on GBPUSD, but counter-trend trading possibilities exist. 🔴 Retest of Double Top: Watch for a retest of the double top pattern completing at 1.2745 on the 4-hourly chart. Traders eyeing a reversal will be attracted. #DoubleTopPattern 🦈 Bearish Shark Pattern: Keep an eye on the Bearish Shark Pattern completing at 1.2743. Short-savvy traders may join in. #SharkPattern 💥 Market Reaction: As two trader groups converge at 1.2745, expect heightened volatility and rapid movements. Stay prepared! #VolatilityAlert 📊 Trade Strategy: Exercise caution with counter-trend trades. Set conservative targets and manage risk effectively. Scale in wisely. #RiskManagement 👀 Stay Vigilant: Continuously monitor price action and adapt your approach as the market unfolds. Protect your capital! #StayAlert
Short
by RaynLim
Navigating the Golden Realm❣️"Unveiling Secrets of the Gold Market for Traders" Welcome to the captivating world of the gold market, where you as (new) trader embark on a metaphorical journey filled with price movements , trends , and profitable opportunities . In this comprehensive guide , i will delve into the intricacies of trading gold, empowered with knowledge that will enhance trading strategies. From deciphering patterns to understanding correlations , i will unlock the secrets of the golden realm, equiped with the confidence to make informed decisions. So fasten your seatbelts and get ready to navigate through the twists and turns of this enchanting market. Range Trading - The Breakfast Feast Picture yourself at a lavish breakfast buffet, where a wide array of options tempts your taste buds. Similarly, range trading in the gold market offers a delectable spread of trading opportunities. By identifying key support and resistance levels , you can effectively navigate within a defined price range. Just as you would choose from a buffet, traders can enter buy positions near support and sell positions near resistance. Deciphering Trends - The Path to Success In the golden realm, trends serve as beacons of guidance for traders. Analyzing price movements over time helps uncover valuable insights into the direction of the market. By identifying uptrends, downtrends, or sideways trends , strategies can be aligned accordingly. Utilizing tools like moving averages and trend lines, may create a clearer picture of the market's path, allowing you to ride the waves of success. Breakouts - Seizing the Golden Moments Just as a phoenix rises from the ashes, breakouts in the gold market signify the birth of new opportunities. Breakouts occur when the price breaches a significant resistance or support level, often indicating a shift in market sentiment. Trades will be positioned to take advantage of these golden moments by entering in the direction of the breakout. However, it is crucial to denote confluences and employ proper risk management techniques or wait for confirmation before diving into the fray. Correlations - Unveiling Hidden Connections The gold market is not an isolated realm; it is intricately connected to other financial markets. Understanding correlations between gold and other assets can provide valuable insights. For instance, a negative correlation with the U.S. dollar may indicate that a weaker dollar could lead to increased gold prices. By monitoring these relationships and recognizing their impact, you can make more informed decisions and maximize profit potential. Retesting - A Second Chance In the golden realm, opportunities often come knocking twice. Retesting occurs when a price level that was previously broken acts as a new support or resistance. Traders can capitalize on retests by entering positions in the direction of the original breakout. This phenomenon can provide a second chance to those who missed the initial move or wish to reinforce their existing positions. By identifying and evaluating retesting scenarios, you will enhance your trading strategy and seize these hidden but well-known opportunities. ☆ As we conclude this journey through the golden realm, you could now posses a deeper understanding of the gold market's intricacies. By embracing range trading , deciphering trends , seizing breakout moments , unraveling correlations , and recognizing retesting opportunities , you can navigate this enchanting market with confidence. Armed with technical indicators, pattern analysis, and an awareness of session transitions, you will unlock the potential for profitable opportunities. So, fellow aspiring traders, step into the foreign exchange golden realm armed with knowledge and embark on your path to success, b e ready to make informed decisions and claim your share of the golden treasures. HappyTrading 🤠 J
OANDA:XAUUSDEducation
by ATU_TAD
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