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GBPJPY: BEARISH FLAG PATTERN FORMED, WAITING FOR BREAKOUT [D]!!!Hello Traders, Here we have a valid bearish flag pattern on FX:GBPJPY and now we are just waiting for a breakout to the downside. Flag patterns are also consolidation patterns, just like any other harmonic patterns ( cypher , bat, butterfly , crab , gartley ). This pattern is usually formed after a strong movement in price action. There are 3 main parts to this pattern: the flag pole , flag portion , and the continuation portion . After a strong movement, a strong selloff in this case, the market starts to consolidate and we expect the market to breakout in the direction of the flag pole, in our case to the downside. After getting the breakout, the target is equal to the length of the flag pole, which is 757 pips for this setup. Also a key point to keep in mind is that, the longer the market stays within the consolidation zone (flag portion), the stronger the breakout to the downside will be. The invalidation point for this flag pattern is when we get a break AND close above the upper rising trend line of the flag portion. Note that we are also getting bearish divergence on the RSI. See the chart above for more details. NOTE #1: Before we reach our full target located at 177.696 level, we also have 2 very strong daily support levels in our way. So we do have the option to book partial profit at these 2 support levels and than we can leave the last position open till the full target is reached. NOTE #2: The daily strong resistance level @ 187.027 should be taken into consideration for stop placement only AFTER getting the breakout in the flag pattern to the downside. Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :) Follow me on Twitter as well: moneymaking2016 Importance of daily support & resistance levels: Validity of the daily support & resistance levels in 2001 and 2002 :
Short
by moneymaking
4
GBPAUD: BULLISH BAT PATTERN WITH HARMONIC AB=CD MOVE [4 HR] !!!Hello Traders, Here we have a valid bullish bat pattern on FX:GBPAUD , which is accompanied by a bullish harmonic move that will be completing just before the bat pattern completion point. On the daily time frame, this pair has put in only a lower low BUT not a lower low lower close. So the structure has been violated on the daily which is an early indication of possible weakness (even if it is for short-term) in the bullish trend. Thus we need to see another lower low to confirm the beginning of a downtrend (even for short-term). So for this setup we are expecting the minor trend on the 4 hour to hold and continue higher. The R:R for this setup is 2:1 for the 1st target. We are also getting fibs confluence right at the bat pattern completion point. See the chart above for more details. Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :) Follow me on Twitter as well: moneymaking2016
Long
by moneymaking
GER30/DAX short, reaching upper edge of flagDue to the insecure overall political situation in Europe, plunging chinese stocks and industrial metals, the testing of the upper channel edge and a relatively oversold market , we may see another breakdown at least to previous structure level of at least 10700. Another support zone at around 10600 marked with the thin green line may also indicate a potential reversal zone at around 10600 to 10700. As always, Stop-Loss is set right about previous structure highs, giving us a nice Risk Reward Ratio of 2,9. In long term view a decrease down to about the 10000 level is the maximum imaginable to me, because of huge resistance levels marked with the long green rectangle. This would theoretically give us an RRR of 5,17 but is not easy to predict in this by politics driven stock markets
FX:GER30Short
by tonitrader