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Multitimeframeanalysis

headed toward multitimeframe long term resistancethis stock has exploded to the upside, retraced a decent consolidative amount, and taken aim for that high. there is a large uptick in the fair value calculation that makes this a strong bullish move. there are different scenarios. one is that we set a lower high on an overbought 4 hr level. another is that we go straight for the high and taper off, and the other is that we break the highs and head for the long term area high right over $34.
NYSE:AILong
by cerealpatterns
1.0633 and 1.0645 Eurusd. Clear Market StructureWe had Buyers use data to grab lower prices at 1.06. Time will tell if this is accurate. If we maintain market structure, In the short term, I see no reason why we could not touch 1.0645. I concluded this from previous daily close. 1Hr and 4hr candle closures must respect 1.06230 1Hr Zone. Price Currently is at 1.06237. Though considering price gapped down over the weekend by -.1% ,, it does not erase last daily candle closure. Bullish 36 Pip Body Candle. Idk seems sus considering previous bearish engulfing. We'll see. Riding Intraday Moves on EU requires flexibility.
Long
by ShrewdCatfx
1
EURJPY, Double Top Bearish Price actionEURJPY has been shaping up for a big sell opportunity as we can see price was rising within an ascending channel which impulsively broke downward forming a bearish correction. Double tops have been confirmed indicating more downside is possible. As we see many different target levels that price could test, it may take weeks for this sell to make its way all down. Take your profits as the market gives you, ensure proper risk management and exit criteria is implemented. Thanks Trade Safe
Short
by ktlfx
1
CURRENCY CORRELATION HEAT MAPCurrency correlation is important to understand in forex trading because it could impact your trading results often without you even knowing it. In this post, I will share some information about correlations in forex trading and how you are able to use it to your advantage to avoid unnecessary losses. Throughout my journey as a beginner trader, I have bought or sold 2 different currency pairs many times without knowing they are negatively correlated just to let the gains be offset by the other pair. My aim in this short post is to bring awareness about the positive and negative correlations between the currencies, specifically the most traded major pairs in the forex market. What is correlation in forex trading? A foreign exchange correlation is the connection between 2 different currency pairs. There is a positive correlation when 2 pairs move in the same direction, a negative correlation when they move in opposite direction, and no correlation if the pairs move with no relationship. In order to understand the relationship between 2 currencies, you must know the correlation coefficient and how it relates. What is correlation coefficient? A correlation coefficient represents how strong or weak a correlation is between 2 forex pairs. They are expressed in values and range from -100 to 100 or -1 to 1, with the decimal representing the coefficient. The higher the value of the correlation coefficient will largely reflect the movement of the other pair. See Figure 1. Correlation Heat Map For example, If the reading is -70 and above 70, it is considered to have strong correlation between the two. Readings anywhere between -70 to 70 means that the pairs are less correlated. With coefficients near the 0 mark, means little or no relationship with one or another. As traders, implementing risk management in our trading plan also reflects to correlations as you may think its a good ides to buy 2 highly correlated pairs thinking you will double your profits when in reality you may lose double the money as both trades could end up in a loss as you're doubling your risk. Figure 2 . Positive Correlation: EURUSD / AUDUSD As we can see on this line chart between EURUSD / AUDUSD, both pairs have a strong correlation coefficient as they are moving in almost the same direction. The correlation coefficient is valued at 75 as noted on the heat map. For example, if you place a buy order EURUSD and place a sell order on AUDUSD, expect a win and a loss in most cases. Figure 3. Negative Correlation: EURGBP / GBPUSD On this line chart, we can see that both of these parts are moving in opposite directions which are showing a negative correction between the two which in fact is also known as an inverted correction. The correlation coefficient is valued at -90 on the heat map which means if you place a buy order on EURGBP and a place a sell order on GBPUSD you may double your profits, but again you're doubling your risk. Figure 4. No Correlation: GBPJPY / USDJPY This line chart shows that both of these pairs move in the same direction with a correlation coefficient of -9 which has almost no correlation. If you place a buy order on GBPJPY and place a sell order on USDJPY, one of these trades will most likely end up in a loss. The pairs that have no correlation usually have different and separate economic conditions therefore coefficient values tend to be lower. In summary, understanding which pairs are correlated with one another will be able to help build your strategy and improve your trading results. Every trading strategy NEEDS to have Risk Management implemented in it as it is the key to sustainability for the long run. Trading is a marathon NOT a sprint. To learn more about forex correlations and their relationships, please see the following links. References: www.tradingview.com ca.investing.com If you felt this information was helpful, and hit the LIKE button and FOLLOW me for more educational posts and analysis. Feel free to leave a comment if you have any questions! I appreciate all the feedback. Thanks Trade Safe
UEducation
by ktlfx
12
NZDJPY, Retracement to gain momentum for buyersNZDJPY is looking to continue its growth after a short term retracement retesting the 84.50 level. As you can see price has created multiple higher lows indicating a bearish run may not be likely at this moment. Price impulsively broke out of the upper trendline of a reversal structure surpassing previous highs which we should see further upside after a short pull back. Be patient with your entry, ensure your criteria for entry is met. Thanks Trade Safe
Long
by ktlfx
2
7Am Continuation. Looking for 1.0583 and 1.057It is Likely we will see a Continuation of Momentum. This is due to the previous 4hr candle being a large engulfing candle. It is likely we see more red on the current NY Open 4hr candle, or on the later 4hr candle. Probabilities speaking. Price has Continued to Respect Market Structure on Higher Timeframes ->> Daily Timeframe. 4Hr There is Momentum, alot of red candles, alot of sellers sitting patiently to jump on the train at 1.067 I think they are looking for 1.055. We'll see.
Short
by ShrewdCatfx
EURJPY ForecastWe have two potential scenarios for the EURJPY. Unfortunately, none of them will give is a good trading opportunity in the short term. Scenario A The corrective cycle that started in October 2022 is not over, and we will see another wave down before ending wave 2 in the primary degree (green) What to do in scenario A? In this scenario, when the price reaches the green Inflection zone, we will buy EURJPY Scenario B This corrective cycle ended on January 2023, and we have already started wave 3 in the primary degree. What to do in scenario B? The EURJPY will need to break the highs created on October 2022 before looking for buying opportunities in a shorter time frame cycle. In conclusion, in the short term, we do not expect that EURJPY can provide us with good trading opportunities. We will continue analysing it for you and updating you accordingly if the market structure changes Please remember to do not to risk more than 2% of your account on each trading idea
Long
by TradingtheRightSide
Inflation Data was a catalyst to Pullback for Liquidity/+ >PriceWell it appears that inflation helped price pullback to 1.079. Price didn't spend much time up there , less than an hour on tuesday , when data came out. ever since we have bears from last week reappear. momentum is strong because of unexpected nfp data, cpi was expected, positively declined , if that makes sense. price is showing us relentless selling pressure. i mean the price is currently holding up a weekly candle top wick that measures 123 pips which isn't unusual but significant. Price has only gone 24 pips below weekly candle open. It is likely we see a larger range created to the downside. current price 1.06596
Short
by ShrewdCatfx
1
Momentum Setup // Pre-newsWe have a wicks to fill. One is at 1.06174. The Other wick is the Previous weekly candle low at 1.06120. We have momentum so most likely we will touch these prices at some point. We are trading 2 hours before news here. Ultimate target on week on 1.055. Additionally, I think FOMC will help provide a catalyst to take us lower. We may pullback hard first, for liquidity. So be aware of price spikes as we walk into news. Momentum , with regard to Price Action, is explained in the previous post. If we look at Weekly/Daily timeframes we see all red or what we interpret as rejection wicks, which aligns with our bias.
Short
by ShrewdCatfx
1
EUR/USD: multi-timeframe perspective for the weekFirst of all, taking a look at the DAILY timeframe chart of EUR/USD, we may notice the inability of the price to break below the 1.065 - 1.068 area of support and a formation of a huge wick candle. What is more, an ascending channel can be identified and we can observe that the price is stuck in a consolidation box at the lower barrier of it. It's a "break or bounce" scenario at the moment, and we need to use the assistance of other timeframes in order to get further confirmations. Therefore, we are zooming into the H4 timeframe graph and continuing our analysis. The 1.066 area of support has been penetrated both to the downside and to the upside in the span of the past few trading days. Before the market closure last Friday, the price was able to impulse towards the North by breaking the previous Lower Low point. Technically, taking a deep look, we may notice that a Left Shoulder and a Head have been formed. Now, we need to see another Shoulder in order for our Inverse Head&Shoulders pattern to be completed and confirmed. Thus, we are having close eyes on the 1.066 area of previous resistance now turned into support that lines up with the 50% Fibonacci retracement level for entering long positions and aiming for the zone highlighted on the graph. One thing should be taken into consideration: ONLY IF the price manages to retrace the 1.066 level and form a solid right shoulder pattern, our BUY idea will be valid. We are gonna be reactive instead of being predictive. Hence, we will keep monitoring the price development and patiently wait for our entry criteria to be met before executing positions. No rush. Plot your zones and wait for the price to come to you. Once the price is at your zone, wait for your entry criteria to be met before entering the trade. Have a great trading week Investroy
Long
by Investroy
13
EURUSD Analysis + Recent Volatility EXPLAINED (Description) I have a Bearish Bias on this Pair. Trading Structure and momentum on this Channel. Check first Chart in Description to See what I'm looking at. Also, Included in the Description are two charts from Days Feb 1st ( Interest Rated Decision) and Feb 7th ( Fed Powell Speech ) These Charts , when compared and contrasted , are not much different. Actually they are quite the same. After news create initial volatility, Price is corrected nearly to the same price in which it begun shortly after, it may take 1-2 trading sessions or it could take only 1-2 hours. All relative.
Short
by ShrewdCatfx
EURJPY - Exciting SELL opportunity with big potential! 🔻As shown on the charts by multi-timeframe analysis, from weekly down to daily and hourly, we can establish a clear bearish bias for EURJPY. Noteworthy observations: - the liquidity pool on weekly timeframe is very obvious and price will eventually go for it, so I keep that in mind. - untested hammer head on daily timeframe is also very obvious and it usually acts as a magnet for price. Depending on how aggressive you want to be with this trade if it works out, entry could be a price action confirmation signal near the buy zone or a sell limit order. I will closely observe the price action near the first target and make a decision whether to close my trade there or adjust my stop loss to the second target. If I have a strong bias that price is ready to make a run on the liquidity pool, I may re-enter the trade after exiting.
Short
by TradingEdgeHQ