Meanreversion
HEQ2018 Price Target 66.15Expecting huge Commodity shift in the next coming days
We are sitting on the bottom of the Apocalypse Band our larges band on the hourly chart
which means in the next 10-15 days there should be a very nice bounce as we attempt to revert to the mean of the Arbitrage Band our smallest band.
Short the Soy CrushThis very interesting soybean crush spread is very close to its extremes and we think it is a good idea to short this spread. To do this, you need to buy 1 contract in soybean meal, 1 contract in soybean oil and buy 1 contract of soybeans. Our target is the level of 130 and we are willing to sell one more spread at the level of 180.
WMT Daily Bull Div Presents Buy OpportuntiyWMT bull div presents buying opportunity. WMT is 25% below all time high, a pullback that has occured with little or no upward mean reversion. Following our MACD and RSI bull div on the daily I expect to see some upward mean reversion here. A tight stop presents itself below local lows where there is very little volume. Target is 23% FIB/daily volume profile node OR just hold it forever since WMT is pretty safe stock.
Mean-Reversion Swing Trading Strategy v1 A port of the TradeStation EasyLanguage code for a mean-revision strategy described at traders.com
In “Mean-Reversion Swing Trading,” which appeared in the December 2016 issue of STOCKS & COMMODITIES, author Ken Calhoun
describes a trading methodology where the trader attempts to enter an existing trend after there has been a pullback. He suggests looking for 50% pullbacks in strong trends and waiting for price to move back in the direction of the trend before entering the trade.
BTC Pitchfork Analysis: Attractive short-term buy area Price has greatly respected this pitchfork, and it has served as a useful guide. Here we see that the .5 - .618 area has served as a strong support and resistance zone in the past. As of writing, the 7,400 - 7,500$ area falls in this range and is where price becomes more likely to bounce and test old highs. In my opinion, target points from longs taken in this area should be extremely conservative, with 7,800$ serving as a maximum with profits taken along the way. Although a long becomes attractive in this price area, stop placement is tricky. Previous price action around the .5 - .618 area suggests that stops just below the .5 line are likely to be triggered with price only to reverse and test the .618 area, at the very least. The next attractive area to place a stop is beneath the line-of-best fit ( The red solid line on the chart; calculated via linear regression starting from the all-time-high) or the dotted trend line. However, placing a stop loss beneath these areas reduces the reward-to-risk ratio to unacceptable levels (less than 2:1). Price becomes more likely to bounce and test old levels as price approaches the line-of-best-fit and at the dotted trend line. Although the red circled area on the graph above highlights the first safe area to go long, it might be wise to cost average in. The long could be split up into three buys: At the .5 - .618 area of the pitchfork, the regression line from the all-time-high, and the dotted trend line. A reversal from the line-of-best fit or the trend line would likely allow price to rise to a break even point, as price decreases past this point without retests of prior levels is unlikely.
:Note that the line-of-best fit on the chart above is dynamic and changes with time. You will have to use the regression tool in tradingview to be sure of where it currently resides.
Very Lackluster Day for StocksThe momentum and volatility in stocks has subsided for the moment due to geopolitical risks, in particular political uncertainty in the US. This would be a good range trading day, if that's your thing. The Kovach Momentum indicators have basically flatlined and the Reversals indicator has pointed out some nice entry points (shown with green triangles) for mean reversion trades.
The Kovach Momentum and Reversals indicators were critical for this analysis. For access to these indicators and my cryptocurrency package, please sign up at quantguy.net
Daily Mean Extension with Bearish Conf. on Lower TF's (GBPJPY)On the daily TF for the GBPJPY the bullish impulse has been stalling and we are now consolidating in an area well extended from the 200 SMA. On the 4HR, there has been several attempts from the bears to break below the 200 SMA and have held, but now we have had a big impulse down, through the 200 SMA with a bullish correction. This is more easily seen on the 1HR, but regardless a sell stop has been placed below the low of the bearish candle. (148.665 - a few pips) (A bearish MACD signal on the 1HR, CCI breaking below -100, etc. could also do instead of trading the breakout below the candle.) Partial TP at 147.029 as its been a significant level in the past, and it would be smart to trail the rest of the trade on its way back to the mean on the Daily.
USDNOK: Still range boundUSDNOK is giving a good chance to enter longs aiming for the Brexit key level above, which is now acting as a magnetic level, pulling price towards it.
The recent drop bottomed and turned around, breaking back above the daily low of the Brexit day, which now serves as a good level to hide our stops and gives us an excuse to go long on dips, or at market if not in it.
We also see that the yearly SMA (252 periods) sits right where the Brexit level does, so it's logical to observe 'mean reversion' here. This trade is a good one to have while holding oil longs too.
Good luck,
Ivan Labrie.
GBPCAD: Nice long setupSpread between GBPUSD and CADUSD is too wide, it'll be closed soon. We can see that this is a clear long. Let's use a safe and more conservative stop loss for now.
Cheers!
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Cheers!
Ivan Labrie
Link to Tim West's chatroom: www.tradingview.com
We discuss setups like this often there. Feel free to stop by and subscribe to his indicator pack. If you have any questions ask.
Risk disclaimer: My analysis is provided as general market commentary and does not constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
USDCAD 1H Short: Reversion to MeanUSDCAD has been producing bullish moves, creating a possible uptrend on the Daily and 4H TF's. I want to take advantage of a the reversion to mean trade before buying this pair. A conservative TP can be placed at the completion of AB=CD for the correction. An unhit weekly pivot sits below price and is confluent with the 200 daily EMA for a possible T2. SL is placed tightly above recent highs as breaking this level will put me in the bullish camp.
Trade weighted GBP index: Pullback startingIt appears like we can take mean reversion trades in GBP pairs. Find the most overextended currencies (JPY, NZD, AUD), the ones that have outperformed the most against the dollar, and fade them by going long GBP against them.
Risk 1 average range on each, and aim for 5 average ranges up. This more or less gets you to the Brexit Key level in the daily, which would be the 24th's close. You can wait for the index to be above the 3 day range here to be safe, or just enter at market now if more aggressive.
Credit for the trade weighted GBP chart goes to @Rocketman, who expanded on my average index chart work recently and posted his. See related ideas.
Good luck!
Check out my updated track record here: pastebin.com
If interested in my real time whatsapp alerts and swing trading newsletter, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year.
Cheers!
Ivan Labrie
Link to Tim West's chatroom: www.tradingview.com
We discuss setups like this often there. Feel free to stop by and subscribe to his indicator pack. If you have any questions ask.
Risk disclaimer: My analysis is provided as general market commentary and does not constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance1.43% on such information.
Bet on reversalJune 17 bar sells off with large volume, but couldn't drive the price much lower. Take a look the similar pattern on Jan 15, Feb 11. There would be a good chance to form a low here.
EURCAD Short: Weakness Into Weekly Pivot + 500EMAEURCAD has respected the 1.554 level and is showing signs of short term weakness. The pullback after completing leg AB of the potential butterfly pattern has presented an opportunity to sell. Relatively flat 200SMA and 500EMA with price hovering above adds to short term bearish bias. The unhit weekly pivot makes for a good target. SL is placed at structure highs and entry just above hourly open yields a R/R of 2.41.
USDJPY Long: Cypher in SR Zone + Mean ReversionUSDJPY has completed a bullish cypher on the 1 hour chart with a PRZ that is confluent with S/R. A missed weekly pivot, EMA200 and SMA200 sit above price to add to bullish bias. Entry is placed at the base of the PRZ with SL at 1.13XA and target at .382CD.
Confluence in the PRZ:
.786XA (cypher completion)
1.5AB=CD
1.272BC Projection
Unhit weekly pivot above price
EMA200 above price
SMA200 above price