USDJPY Now redistribution has startedLast week I was still wondering if we would go into the re-distribution phase. We continued to spike down last week to reach the bottom of the 55 Day and 21 Day Oscillation Frequency Channels. We also touched the 100 level but did not break it. There as been divergence on the TDI for some time. With NFP coming in better than expected I think this could indicate the end of the markdown phase and the start of another distribution phase. The corrective structure that should develop now could take us into next year before a further markdown phase occurs.
Distribution
Maruti - Doji with Bearish Divergence (Sell)I have observed three doji candlesticks, that denotes consolidation or distribution, where previous buyers book profit or distribute their shares. It is at the level of selling or resistance. I believe it is a good time to short it now at minimum risk size and also at this point where Nifty is also looking bearish.
Further 3 points noted:
1. Doji formation with bearish divergence
2. Shrinking of volume levels with increasing prices, signals trend change, for this one, a bearish signal.
3. Double Top with bearish divergence.
Above points make me think that it is a good sell, with a stoploss of 4238 (1.28%) and target of 3922 (6%)
USDJPY Redistribution has started?Based on the Wyckoff evaluation I have been following the past weeks it is possible that we could be in a redistribution phase for the USDJPY. The previous accumulation phase bounded the market between 105 and 101 and this could occur again. The redistribution could extend to the next fib time zone in February 2017 as measured from the market peek of the distribution phase. Good volume spikes are indicate at the fib time zones. Will be looking for a drop on NFP on Friday back to the LML of the Pitchfork.
Bitcoin Market Crash Cycle Comparison - Launchpad
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If you are familiar with this image, you'll understand very well that market crash cycles can be found in every corner of the market. With the only similarity between all markets being the human beings behind the money (price), it would be sensible to think that the psychology & emotions behind these humans play a pivotal role in understanding markets and trading.
If we can break this market structure down into 4 easy-to-understand parts, we would come up with something like this:
1. Accumulation
2. Launchpad
3. Pump
4. Dump
Relating this to Bitcoin, it seems like the year long accumulation period is over, as $BTCUSD broke above major resistance $300 in October 2015. Based on my interpretation of the market crash cycle, we have now moved into the launchpad phase with our current price action raging between $294 and $502.
If Bitcoin continues to be the leading blockchain network, it should become widely regarded and generally accepted as the base currency of other cryptocurrencies. In the shorter term, the bitcoin halving happening in Q3 2016 will set the stage for a pump, and for that to happen, MMs must maintain the uptrend structure formed since October 2015. Any breaks below structure will either delay the pump, or lead to another downtrend.
Upside targets are $710, $995, and $1163.
Downside is $341, $280, $220, $160.
$NHTC eaZY 1800% Basic TA [ SnipeSnipe ]Look at this Market.. ok ok.. it doenst matter which market, but this is gone wild for the last couple of months.. perfect market cycle.. even foconacci Extension was working.. =) So lets crack da Nuts..:
Whats going on and on and on - every market every TimeFrame:
1. Accumulation
2. First Pump
3. Accumulation
4. Second Pump
5. Accumulation
6. Third Pump
7. Distribution
8. Pullback
9. Bounce
10. Sell off
Questions..? No.. Onto da next one.. Search those gems.. wait .. wait.. ALL iN.. $$$ ..! =)
USDCAD 60min Balance Area Breakout Opportunity USDCAD has had 9 Straight days of Advance and has been VERY Bullish. It's currently in a nice Rising Channel. The Balance Area at the highs looks like Distribution to me. A lot of times this is a "topping pattern". So, I'm waiting for a Break & Close out of the Balance Area (Yellow Box) and will enter a short position.
Stops - Will be 1 ATR above the Breakdown Bar.
Target #1 - Will be a measured move of the Balance Area (Purple Line)
Target #2 - Will be at Minor Support for a downside breakdown. 1.618% for the upside breakout
You can see that the RSI has massive Divergence at the highs as well.
I will also take the trade to the upside but I think the downside breakdown is the most probable scenario.
Stock Market Under Distribution for the Past YearThe stock market has topped. Volume has been highest on down bars for the past 12 months. Up volume during this time has been much lower. This is happening at the 2.618 Fibonacci extension level after a protracted starting in 2012. This is making a round top. It has taken a long time. My belief is we will see large declines in 2016. I won't try to forecast how far or long the market will go down but I do believe the decline will be significant.
Breakout Opportunity on USDJPY 240minUSDJPY is up to its same old tricks. The USDJPY like to consolidate tightly for periods of time then explode out of the range. This Breakout/Breakdown opportunity is setting up on the 240min chart. It's just a simple Balance Area. These Balance Area's are where "smart money" is either Accumulating or Distributing positions, we never really know what they are doing until we see the breakout. I'm favoring a downside break BUT I will NOT involve my self until I see a BREAK & CLOSE out of the Balance Area on the 240min Chart. Stops will go 1 ATR above/below Breakout bar. Targets are listed on the Chart.
Downside Scenario:
IF we break down, THEN we could be setting up a possible Head and Shoulders Pattern. This is shown on the Chart. IF this happens, THEN you will have the option to adding to your position or adjusting Target #2's to account for the Head and Shoulder Trade, just make sure you are following your rules in your Trade Plan.
Upside Scenario:
IF we break to the upside, THEN Target #1's line up with Structure (Look Left) and Target #2's will require us breaking into new Yearly high's. Breaking new highs is unlikely UNLESS we get a fundamental push like from the FED raising rates next week. I will be holding for Target #2's because that is what my Trade Plan says.
TIP: Having a Trading Plan helps to eliminate trading decisions based on "emotions". IF you don't have one yet, THEN I would encourage you to make one before making another trade :))
Best of Luck!
DJY0One of the critical things to look for as a trader is DISTRIBUTION from the funds. We look at this on the indexes. Any index showing signs of distribution is a clue that potential turn is coming. One day a trend does not make, but if we see a series of lows and higher volume on those lows it is critical to get to the sidelines...or tighten stops. I look for 4 plus days in a month of trading to give a warning. Or a cluster of high distribution in a short time. This tells me the institutions are taking profit or exiting..I want to be the little wave runner in the wake of the huge Ocean Liner by following their flow of money.