H&s
NZDUSD ANALYSIS WEEK OF JULY 17, 2016Looking on the Weekly chart price broke through the weekly resistance trend line. The week closed off with bears showing their mighty force. There are lower highs being made on the weekly so it is still on an uptrend but the last bear candle indicates it is in dire need to create another lower high. So lets see how we can use a double edge sword here.
Looking at the daily it made a nice double top. There is a nice trend line resistance. That seems like a wonderful area to go long. Lets go a little bit deeper.
On the 4H chart there is a potential Head and Shoulders forming. A good area to possibly short this would be 0.72000. Full confirmation would be break of the H&S neck which in turn will move price down to the 0.69000 area which can be the new weekly lower high created for its continuation trend up.
The Bitcoin Megabull Cycle - Still Alive, Come back in SeptemberThis is a zoomed in 1D chart of my previous Trading View chart of the Bitcoin Megabull Cycle but this one is based another of my studies on the fractal of 2012-2013. The previous rally to $790 was actually supposed to fail and I did not notice this until I studied the charts and history further.
The good news right now is that Bitcoin should bottom at $610 and stay above it for the megabull to resume thanks to an inverted bullish H&S t.co and an ascending triangle as seen on my charts and here . (please cut your losses if we go under $610 don't take any chances and rebuy at $585-590 even then the risk to the downside is high - ensure you use a tight stop loss)
Bitcoin will consolidate in the ascending triangle and on halving day blow up to retest $770-790 area. There it will consolidate through sideways between $790-700 or it could even do bigger swings in the ascending triangle just like at $400 until end of August/beginning September. I put an approximate date of August 25-28 for now and once we get closer I will be able to be more accurate with the breakout date. From there we will be able to continue our journey way higher as we head to the "moon". If we manage to hit $1000 Bitcoin could get higher due to increased media coverage and more interest / hype that will bring new money in to the market.
My conservative targets are: $1120, $2800 and $10,000 to $15,000 per Bitcoin
The current fractal maximum potential target is: $10,000 - 15,000
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NZDUSD 1D Head and shoulders leading to .68 flatBears will probably be paying attention to this pattern forming on the daily. I myself am not going short, but I would love to hear you made some money off this one. Things that are interesting:
- measured H&S profit area, exactly matches:
--- rounded .68 number
--- earlier high (green box in march)
- rsi divergence around the neckline and
- failure to go higher right shoulder with massive selling volume
Possible bearish divergence and inverse H&S at the same time?!?Dear all,
After the rally, and the 30% decline it is time to take a closer look at bitcoin again.
Bitcoin has been facing allegations in calmer waters. Currently we see a head and shoulder pattern in the making, on the 1 hour time frame. If it breaks the neckline of 680, my target will be 770. (570-670=100, 670+100=770)
I recommend you to keep watching the resistance at 680 and to keep in mind that this resistance should be broken with a hugh increase in volume, to be valide...
Another thing that I've noticed is the bearish divergence, which has formed on the 1h, but not on the 4h. Because it hasn't formed on the 4h yet, this could mean the next wave on the RSI will be higher than 75 to make the bearish divergence invalide, which is also inline with the bullish H&S.
If BTC doesn't break the resistance at 680 before the end of the month, I would say that the H&S is invalide. For now it's to early to say and everything looks still very promising with the inverse bullish H&S in mind!
Keep watching 680 :)
Good luck trading guys!
Maddie
Anticipation of H&S pattern on GBP/INR I'm anticipating this move prior any signal of reversal, I might be wrong since last candle have strong downside movement. And there is no sign of reversal yet.
Considering Brexit, Head and shoulder pattern can be formed if we can see more strength in GBP or more weakness in INR in coming days. Which will help to complete this pattern and great setup to trade with small stoploss.
GBPCAD: Head and Shoulders PatternHey gang! Found a good Head and Shoulders Pattern right here on the GBPCAD!
Head Resistance: 1.93000
Neckline Support: 1.90000
Profit target: 1.87000
Its a 300 pips profit!
This is my strategy for trading Head and Shoulder Patterns. Take it with a pinch of salt! If you have any recommendations on how I can improve, please do comment here! :)
When to enter:
AFTER it breaks through neckline, it should retest the 1.90000 Resistance level again.
My entry:
66% of my position will be in 1st Position
34% of my position will in 2nd Position
My exit:
SL at 1.90600 (60 pips)
1st TP: 50% of the pattern (150 pips) at 1.88500
2nd TP 90% of the pattern (270 pips) at 1.87300
What I learned from H&S so far:
If the right shoulder is shorter than the left shoulder, the pattern is stronger
If the right shoulder extends further than the left shoulder does, the pattern is stronger
H&S Patterns have a 75% - 80% chance of succeeding (assuming it breaks through neckline)
Good luck guys! May the pips be with you!
GBPAUD: H&S REVERSAL CONFIRMEDHi Traders,
We have a lovely Head & Shoulders (H&S) reversal pattern here on GBPAUD. If you are looking for a short entry, see the chart above for a potential setup. The head and shoulders reversal is now complete with the break and close below neckline support. A pullback into that previous support level will give bears a solid opportunity to add to positions or re-enter short. IF we can stay below 2.0300, THEN I am expecting follow through to the downside to test 2.00 even handle.
Good trading,
Luke
Dow Jones forecast week commencing 16th MaySo on Friday 13th May, we have seen the classic head and shoulder topping pattern confirm here on a lot of major indices. You could apply this thinking also to S&P500 and its derivatives Spy etc.
So the head and shoulder neckline break, all in shorts right? Wrong. Note the orderly bearish action, respecting fibs very tightly on the way down. Also note the formation of a downward channel in the process of forming the head and right shoulder. Also note that next week is options expiry (Opex) on Friday 20th May. This chart tells you all you need to know about what usually happens in these weeks northmantrader.files.wordpress.com
So my plan for next week is perhaps initially scalp short, and look for a reversal around the bottom purple channel line. If this plays out well and we see reversal there, you can get long and hold it, perhaps even past opex into week commencing 23rd May. Just keep bringing up your stops to lock in profit, or ride the trend (buy dips) intraday if you prefer.
If all goes according to plan (warning - it usually doesn't :D), we'll hit the upper trendline, and this will coincide with a 61.8 retracement and also a proper retest of the H&S neckline as resistance. If the plan is still in tact at this stage, that could be an excellent place to look for shorts, aiming for the technical target of the H&S, all the way down at 17k on the dow (which also coincides with the big 2000 level on S&P 500)
EUR/GBP SHORTPRO'S
- Recent head&shoulders pattern
- Retest of neckline after head&shoulders pattern (green line)
- recent retest and rejection of monthly trendline (red line)
- bearish MACD divergence
- Stoch RSI signally oversold on monthly chart
Trade fits my trading style to enter short. Targeting 0.74000 for roughly 4% profit, always risking 1%
THOUGHTS ON THIS?