Long_short
Bullish Three Drive PatternI buy gold at point 2 around $1243 and will close order at target B .
Then I will sell at this point B with target 1.272 Fibonacci Retracement of A2 around $1230.
[AUDUSD] PIN BAR CANDLESTICK + AREA OF RESISTANCEFX:AUDUSD
In this trade we can see a nice preceding bullish trend heading towards an area of resistance, next we see a nice pin bar candlestick which tells us that the bullish power might be transitioning to the bears. Confirmation is needed for me, so i executed a breakout entry below the low of the pin bar candlestick or also called Indecision Candle.
Trading Details:
Time Frame: 12hr
Entry: Below the low of the indecision candle (Pin Bar)
Stop loss: A few pips above the high of the Indecision Candle
Risk/Reward: 2:1
Account Risk: 2%
Simple RSI-MA Algo Beats DOW By Huge Margin Over Past 100 Years!This simple RSI-MA long/short algorithm beats the Dow by a FREAKING HUGE margin over the past century (excluding dividends and trading costs).
The algorithm uses a fast SMA of the RSI as a buy/cover signal and a slow SMA of the RSI as a sell/short signal.
Backtest period = 09/17/1916 - 11/02/2015
DJIA = 98 --> 17,830 = +18,094% = 5.38% CAGR
Algorithm = net profit + open P/L = +43,349% = 6.31% CAGR
Notice how the algorithm dodged both the 30s' Great Depression and the 2008 Crisis. Pretty cool huh? :)
ALGORITHM'S FORMULA (use weekly chart):
Buy/Cover = MA10(RSI10) cross> 50
Sell/Short = MA50(RSI10) cross< 50
STRATEGY TESTER'S SETTINGS:
- Initial cash = $10,000
- Pyramiding disabled
- Re-investment enabled (order size = 100% of equity)
- Trade re-calculations disabled
DISCLAIMER: None of my ideas and posts are investment advice. Past performance is not an indication of future results. This strategy was constructed with the benefit of hindsight and its future performance cannot be guaranteed.
LONG/SHORT LNKD: WHICH DO YOU PREFER?LNKD price action is now showing potential trading opportunities both long and short. The short scenario: The broader time frame is generally bullish but currently we are facing bearish momentum. This is a healthy retracement since it has not compromised any significant supports so far. Using Elliott Wave, I have counted 4 waves of a bearish impulse. This scenario offers a higher probability that we will see a Wave 5 completion before this stock shows any sign of reversal. For day traders and swing traders , the key is to locate an intraday short setup that validates in order to participate in the 5th Wave of this impulse. Looking for bearish price formations on 15 minute charts, or bearish candle reversal patterns on 60 - 240 minute charts can provide an entry opportunity with limited risk. This scenario can be helpful because it can help you anticipate bearish price action over the next few days. If you intend to swing trade this move, make sure to read my bullish scenario in order to understand the price target. (See Short Target Area on chart)
The Long Scenario: Once Wave 5 completes, we need to see where. There are a number of potential support zones between 206 and 202 areas, the 197.50 area and 192 area. Extreme Price Zone support refers to my particular setup that can result from a false breakout occurring as Wave 5 attempts to push new lows. This is one area to look for long validation. And just below that there is overlapping Fibonacci retracement support. The fact that we are trading above this area informs us that this is a healthy retracement and not overly bearish. The magnitude of this support area can make for a significant bullish reaction provided there is a strong broader market to support such a move. As a day trader watch these areas for bullish reversals and validation and be extremely cautious with shorts. As a swing trader, watch for the setup and validation near the extreme price zone. Since this stock is generally strong, the average target of 220.50 area (See Long Target Area on chart) is not unreasonable. Stops must be defined at the time of entry. The swing trade can take up to a week or more to play out and will require a strong broader market to support the move.
Would you like to conduct your own analysis like this? Analysis and trading are two separate processes. How exactly do you use this information for trading? My Trader's Workshop Series addresses this. Learn how to analyze and trade any financial market on a technical basis which includes price action, order flow and other short term refining techniques. When it comes together, you have the qualities of a consistent trader. Read my article about the elements of a consistent trader here: www.unconventionaltrader.com
EURUSDHow about that! I posted this a few weeks ago and now look at it. Guys looking for the wave up, this could be your chance. Dont enter just yet. Lets observe this further, the price movement down is very strong thou the RSI is over sold this could still go down. So dont enter just yet. if the price breaks above the AB=CD close above it. Then we can be buyers.
Trade Carefully and Observe this pair.
