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Flagformation

GBP Continues To Find Buyers On DipsThe Relative Strength Index on the four-hour chart rising to 70 area. Other indicators are also positive – Momentum is to the upside and the pair is trading above the 50, 100, 200 Simple Moving Averages. On the upside, firm break above 1.3012 resistance will resume the whole rise from 1.1958. On the daily chart, the 200 SMA sits just below the flag formation, so that of course is a bullish and supportive sign. The flag suggests that we are going to go looking towards the 1.38 level above, but before that the price should face and break 1.33 the key resistance. The 1.2770/50 region below is an area that is important from a structural standpoint, and now that we have the 50-day SMA reaching towards the 200-day SMA, we could get the so-called “golden cross” that attracts a lot of buying. Overall, a downside correction may be expected, but GBP/USD still has room to extend its gains afterward. We believe that the 1.25 key level underneath is also going to be supportive as it is a major round figure. You can share your thoughts with comments bellow.
Long
by ForexTrendline
US 30 Bear Trend; If continuation from bear flag pennantEquities forming a pennant. Usually these are continuation patterns. A measured move down from flagtip would expect to make a bottom half of flag-pole equal to top half, for about 1800+ pips; this would drop index near 24200, or a bit less. IMO the Megaphone Trend is still dominant. A breakout to upside is still possible if global events magically resolve favorably; this seems doubtful atm. FOMC will likely be too little too late, as usual. You can see index fell sharply below rising TL, bounced up to retest it, and was rejected. Although another retest is possible, it seems the Bears are gaining traction now. This alternative Bear Theory to compare & contrast with my earlier pub on a Bullish Reversal. If the Bulls fail this will unwind real fast. Still consolidating- caution is in order! GTLA trade at your own risk, this isn't advice, just an idea.
DJ:DJIShort
by DaddySawbucks
12
ETH-USD UPDATE: Bear Flag Pattern - Sub $100 Potential BreakoutI believe that Ethereum is sitting at a very key point where we could see sub $100 prices in the next two weeks or the beginning of a long-term reversal. My analysis is based off of two very simple patterns and builds upon my previous analysis of a 4 hr bear-flag formation. My last published idea covered a 4 hr descending triangle pattern continuation recognized by Audicted when ETH was in the $280+ range. The pattern predicted ETH dropping into sub $200 territory, all the way to $170. This marked the point of the first bear flag in my analysis, formed off of the September 11th, 2018 low. This flag extended out to September 23rd with an upward limit of $257. Ethereum stayed within the flag before breaking down to the September 24th low that was right above the $205/ETH mark. I expected a bigger price decline at that point and from there I saw another bearish flag formation starting. My originally published bearish flag pattern from the September 24th low extended to October 1st, it called for a $235-$245 short entry depending on risk tolerance and an exit before $200. Stop losses were a tight 5% of 256, assuming that if the price were to break the upper limit of the flag then the bearish pattern would have failed and new analysis would be required. From the call on September 28th to now, September 30th, ETH has traded within this second bearish flag trend. I am updating my idea based upon further development of the trend and subsequent data points, and I am also amending my suggested entry points. My updated analysis, chart below, reflects 3 new considerations. First and most basic, the second smaller bear flag formed off of the Sept. 24th low has been extended out to October 15th. This flag is represented by the two blue lines connecting to the initial drop highlighted by the purple line and other potential legs down following the flag pattern. Second, the yellow and green larger initial bear flag formed off of the Sept. 12th low was adjusted to meet the September 24th low as well as the September 21st high. Originally the September 21st high for the yellow flag was still within the range, but the September 24th low had broken through the original lower bound of the first yellow bear flag. This update reflects that development in the trend. From there the flag was extended outwards along the same range as the blue and purple flag. Third I have readjusted my entry and exit points. With how erratic this market has been, and some long term trends I am seeing potentially developing, I am now waiting to enter this trade only if it breaks below the lower blue line on the smaller flag. I will stop loss the trade along the height of the upper blue line. This represents a stop loss of 5% throughout the blue flag pattern. If ETH moves upwards past the upper blue line and towards the upper yellow line I will be reevaluating entry points. Any short entry point below the upper yellow line along the timeline should be profitable but I am proceeding cautiously due to the possibility of a long term trend that contrasts to this bearish pattern I am following. I have alerts set along the blue line and corresponding four hour windows. If the trend continues and ETH breaks the lower blue line then it has the potential to very quickly break the lower yellow line as well. I believe this would present with large downwards pressure with ETH going sub $170. Depending on entry point this could result in a 25%+ gain without leverage. My second longer-term analysis is prompting caution on this trade, which is why for now I will be trading only within the upper bounds of the blue flag and not the larger yellow, though if it breaks the larger yellow I will be looking to capitalize on a large downwards breakout. In the long-term I am seeing both a small rising wedge and also a large falling wedge. These are both very basic patterns, but I believe they are useful for this analysis. The (Purple) large falling wedge takes points from the peak of the ETH price bubble in mid-January and one of its lows in early-December right before a 60% upwards movement followed by more massive upward movements to the peak of the wedge. I believe the September 11th sub $170 low is an important data point on this falling wedge. I would argue that if it had fallen below that point there would have been very little support for ETH on the way down. I believe this longer-term trend is worth being cautious as there seems to be potential at this $230+ price range for ETH to break above the upper purple wedge line and confirm the pattern. The (yellow) smaller rising wedge has formed within the (purple) large falling wedge. The wedge begins with the $280+ ETH highs in early September and the September 11th low off of the 4hr descending triangle referenced. What I see as most interesting in this chart is how the rising wedge appears to converge upon the upper bound of the falling wedge. In my opinion I think we are about to see a major breakout in one direction or the other. If the rising wedge pattern confirms then ETH should drop away from the upper purple falling wedge line towards the lower purple wedge line. When this happens the falling wedge pattern would likely be denied and ETH could fall drastically to the sub $100 range. However, if ETH breaks out of the rising wedge then it could mean the falling wedge pattern would be confirmed shortly after and we would begin to see a long-term reversal. An overlay of the large falling and smaller rising wedge patterns on top of both the yellow and blue bear flag suggests that we could see this explosive negative price movement within the next week or two, or the beginning of a longer-term slow reversal. The three largest patterns all intersect on October 8th with a price of $240. I believe the smaller blue flag could be an early indicator. If at this point in time ETH is trading above the lower line of the yellow flag, above $240, I think we could begin to see a long term reversal taking place over a long period of time and this could be confirmed by ETH exceeding the upper bound of the yellow flag. Consequently, if it breaks out below the yellow flag lower bound and the lower bound of the rising wedge then we could easily see a steep decline and a continuation of the long-term trend to sub $100 levels. I believe the short side of this trade is a stronger position especially considering the trend following within bearish flag patterns. I believe there are also some fundamental aspects of Ethereum that lend towards a short position. Furthermore, the long-term falling wedge that would signal a long term reversal is based upon prices that formed during a speculative bubble, it could easily be a false indicator. A confirmation of this pattern would only mean there is potential for the reversal to begin, but I would not expect any large upwards price movements right away. To reiterate my position, I am entering on the short side of this trade along the lower lines of the yellow and blue bear flags, and stopping out at the upper blue flag. I believe the trade would be profitable with a stop loss as high as the upperbound of the larger bear flags yellow line but I am playing in this tighter range until October 8th due to my analysis of long-term movements.
BITFINEX:ETHUSDShort
by Captainsmugglebutt
DXY Bearish Butterfly + 3rd Elliot Wave flag consolidation.As you all may know in my previous TVC:DXY analysis I shared a bearish trap in the weekly analysis , right now TVC:DXY is in a Bearish flag consolidation at our 4H chart and a Bearish Butterfly Pattern. Also you can see that TVC:DXY is losing strength in MACD and RSI indicators divergence indicated in chart, therefore is a good time to go selling short down to 89.9 zone. Remember that TVC:DXY directly affects all mayor pairs, therefore you can short selling pairs like FX:USDCHF , OANDA:USDJPY , OANDA:USDCAD or short buying in pairs like FX_IDC:XAUUSD , FX:EURUSD , FX:GBPUSD . Also I am glad to share that we are creating a Telegram Group for Forex Advance Helping with no fees and payments, only for forex advanced analysis sharing, If you want to join us, just leave a post in this analysis and I will contact you back. Safety Trading Folks!!!
TVC:DXYShort
by BrunoCarrascoLargher
5