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Neckline

Strong USD Sell Signal Further to the previous head and shoulders top pattern which met target, the DXY is setting up for a larger downside pattern. I posted the chart pattern in the link below (refer comments section) just as the neckline broke out. Sloping necklines perform really well, so expecting a nice drop. This really does spell trouble for the US Dollar and could be a major turning point. What will this mean for Bitcoin and the crypto market? I've been bullish on EUR, USD and GBP pairs until at least we reach the target at 94.16. Please give this trade idea a THUMBS UP and I will keep you updated! Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
TVC:DXYShort
by hedgewithcrypto
BITCOIN: BTCUSD Inverse Head+Shoulders' Necline being RetestedBitcoin Updates Bitfinex Bitcoin finally broke higher at the highly inconvenient time of 01:55 Bst 20:55Est. For those lucky enough to be around for it this triggered a long from " the break above 6500 for a scalp to 6616. If volume stays low look to close down a little below here . The 6616 line is the neck-line of the still smouldering IHS. Any break above here on rising volumes can be followed long again with stops under 6600 looking for 6892 initially, then 7144 and 7400 in 3 potential long trades or stages." Well the volume shot up and the high on Bitfinex and Coinbase and a few others was 6899. No stops were hit on the way up. Between 300 and 390 points of profit so far. It's been a long wait for a decent break. Just hope US players managed to get on it even if Europeans got left behind on this one. Since the high it's fallen back to the first line of support at 6630 after spiking below it to 6600 and is trying to build a base from here after a spike lower and a second retest of the support line precisely. Ideally for the bull case to hold good (and the IHS too) it should come back one more time, coming close to the 6630 line and hold there before the next phase of the rally kicks in, as above. Any failure to hold at 6630 -6660 will tip it back into near term bear territory who will likely force price back to the 6530 line again where it should bounce higher when tested.
BITFINEX:BTCUSDLong
by sumastardon
2
Ugliest inverted h&s I've ever seen but technically still valid.After one of the most massive bullish 4hr volume candles we've seen in a long while, We shot all the way back up to the neckline of the inverted head and shoulder pattern that never quite got invalidated but is now looking rather ugly. Had I been watching the charts when this bullish volume spike occured and saw the rejection I would have exited at the neckline as a very safe spot to then buy back in a few pips above it if it breaks out or accumulate a little more whenever it finds a resting place after getting rejected but I was unfortunately preoccupied with other things and wasn't watching the charts. Either way because of just how massive that volume candle is I have a feeling up will be the path we ultimately head. If this turns out not to be the case and we break down from here I will be prepared and may ladder out small portions but I am optimistic we will hopefully be heading up or sideways at least. The RSI on the 4hr seems to suggest we are reaching the overbought zone but I ahve yet to look at it on the 1 day chart.
BITFINEX:BTCUSDLong
by DrDovetail
Don't Get Excited When EURUSD Retests The Neckline Of The H & S!Well the .1.14500 Crucial support was surely broken last week with a strong bearish candle evident on the weekly chart, thus completing the head and shoulders pattern in the process!. Well so as the classic rule of head and shoulders would say " enter short or long when the price retests the neckline of the completed pattern". This statement holds true to some extent but in this case just below the neckline there is a crucial resistance that might turn into support when the price retests the neckline of the head and shoulders! Pay attention to the 1.14500 level here!. So the first vital question that comes into mind is that : Will the EURUSD actually retest the neckline and when might it do so? To answer this have a look at the 4 hour chart on the image below As you can see a classical reverse head and shoulder pattern is on the verge of completion and should the neckline break the price will head to the resistance of 1.14500 level en route to the neckline of the weekly head and shoulders (1.1600 level). And so NOW TO ADDRESS THE BIG QUESTION ON EVERYONE'S MIND: WHAT TO DO WHEN THE PRICE COMES NEAR OR RETESTS THE NECKLINE OF THE WEEKLY HEAD AND SHOULDERS? Please keep continue reading below i will try to make it less boring as possible but i know that many traders are looking for more in-depth analysis before trading this pair. SCENARIO ONE: WHAT IF THE PRICE NEVER RETEST THE NECKLINE AND BOUNCES OF THE 1.14500 RESISTANCE Its not every time the neckline gets retested sometimes the price might just retrace slightly and resume its downtrend! In our personalized case however there is a crucial weekly/monthly resistance present at 1.14500 level and if the price happens to form any reversal pattern or candlestick on the weekly or daily chart, then an entry can be executed with the SL Above the right shoulder and the TP target set at 1.06 level. Overall the risk reward ratio would be beneficial too in this case roughly around 1:4. SCENARIO TWO: WHEN THE WEEKLY PRICE RETESTS THE NECKLINE AND FORMS A HIGH TEST INVERTED HAMMER Alright, so the price has broken through the 1.14500 resistance level and is now testing the neckline, so what do you? most traders will be naive just to enter short straight away at this point thus neglecting the support that lies beneath the neckline (1.14500). In my personal opinion this is a risky move it might catch many traders off guard. If the price happens to test the neckline then its best to wait for a reversal candlestick to appear on the weekly chart! such as in a inverted hammer of which the price tests neckline and quickly rejects it and closes below the 1.14500 level. have a look at the image below to see the past data on this pair So next week we will be looking for high test candle like these which would confirm that the downtrend will resume. I can NOT stress this enough that the weekly price must test the neckline and close below the 1.14500 in order for this scenario to be valid. Once this happens we can enter a short trade and the risk to reward ratio would be nice as well SCENARIO THREE: PRICE REJECTS THE NECKLINE BUT DOES NOT CLOSE BELOW THE 1.14500 LEVEL Okay, so the price is testing the neckline on the weekly chart but the candle closed in between the neckline and the 1.14500 level so what to do this case? in my opinion it would be wise enough to wait for a break and close below the 1.14500 level on weekly chart thus confirming the support has indeed broken and price is headed down. Although it might reduce our risk to reward ratio from a possible 1:4 to 1:3 its still a good opportunity Either one of the three mentioned scenario would happen next week or the coming week which should give us enough confirmation to go short on this pair! FUNDAMENTAL ANALYSIS ON WHY WILL THE USD GET STRONG The source of the below article: uk.investing.com By Kathy Lien, Managing Director of FX Strategy for BK Asset Management. After a one day reprieve, investors returned to buying U.S. dollars. The greenback is on a tear, rising to fresh 1-year highs against euro, sterling, the Australian and New Zealand dollars. The commodity currencies extended even further with AUD/USD falling to its lowest level since January 2017 while NZD/USD to its lowest since February 2016. The gains in the greenback can’t be entirely attributed to risk aversion because U.S. stocks rose today and Treasury yields moved slightly higher. U.S. import and export prices were underwhelming and data from Europe was decent. The Turkish Lira is also off its lows, so the stress on emerging markets did not intensify, leading everyone to wonder what’s behind today’s move. The answer is lies in the bigger story. Looking across the globe, there are no shortages of uncertainties that could easily jeopardize a currency – in Europe, we’ve seen no meaningful policy changes in Turkey, European banks are still at risk and the odds of a no-deal Brexit is growing. Even if the losses for banks are minimal, the hit to investor and business confidence could be significant. In Asia, Chinese consumer spending and industrial production is weakening, posing a greater risk to countries in the region. All of this explains why investors were reluctant to pick bottoms or take on risk. When no buyers could be found, the sellers stepped in ahead of Wednesday’s U.S. retail sales report. With wages on the rise and the labor market growing, consumer spending should be strong. Not only is the U.S. economy more stable but it is doing better than everyone else. Recent developments make it less likely for the other central banks to raise interest rates while the Fed needs a very good reason to pass on a rate hike next month. The euro is the weakest currency today because investors are worried that Europe is ground zero for the next emerging market crisis. These concerns overshadowed improvements in Eurozone data. Second-quarter GDP growth in the Eurozone beat expectations, with the economy expanding 0.4% between the months of April and June. Unfortunately Germany was the only country where the pace of growth accelerated – all other Eurozone nations experienced steady to slightly weaker growth in Q2. Investor confidence improved significantly according to the ZEW survey but the data was taken before the Turkish Lira blew up. Between trade tensions, slower Chinese growth and Turkey’s economic crisis, the outlook for the euro is grim. If EUR/USD breaks 1.13 the next stop will be 1.12. Sterling gave up earlier gains to end the day near its 1.2705 low. This is a big week for the U.K. but risk appetite, market sentiment and Brexit headlines continues to have a greater impact on the currency than data. Tuesday morning’s employment report should have been good enough to keep sterling supported but it didn’t. Although wage growth slowed slightly, the unemployment rate improved and jobless claims increased less than expected. Consumer prices are due for release Wednesday. Of all of this week’s reports, inflation has the greatest chance of helping the pound because price pressures was the main reason why the Bank of England raised interest rates this month. Yet with the selling pressure in GBP is so strong, external risks has and could prevent the currency from rallying. The sell-off in GBP gained momentum after the U.K.’s foreign secretary said the risk of a no-deal Brexit have been growing but GBP/USD collapsed on the back of the rising dollar and not UK factors. The performance of the commodity currencies was less consistent. While the Australian dollar had been under pressure throughout the European and NY sessions, the New Zealand dollar turned later in the day. The Canadian dollar, on the other hand, outperformed the greenback. The loonie was the only currency that bested the buck. Its resilience was initially attributed to rising oil prices but when the dollar turned oil prices reversed as well but the loonie held strong. As for AUD and NZD, it is difficult for these currencies to do well with the Chinese economy slowing. China reported softer industrial production and retail sales data Monday night. END-----------OF------------------ARTICLE Overall this is a very rare high probability set up and provided if one of the scenarios are met the odds will be hugely in our favor. so watch out for any updates on the signals on this thread. i hope this information is useful to many beginners and experts too. Thank you and cheers have a great weekend
Short
by FX618Analysis
1
AUDUSD tested top of the triangle, pullbackAUDUSD tested top of the consolidation triangle, pulled back to .618.. than retested the neckline of the top. now heading to the bottom of the triangle. this is a second opportunity to short this pair. if the top of the triangle has been missed. there is a inside bar forming on 1H time frame if we need further confirmation, we can wait next 15min, at the time of writing, for the bar to close and than look for a break to the down side,, as upside break is likely to run into resistance quickly at this point.
Short
by danny394143
AUDUSD multiple optionsIt looks like we are going to see some bullish momentum over the coming weeks for this pair, it seems like the price has touched the support level and lost most of its pushing momentum. This shows that the price is not looking strong enough to break through this critical support level, if this support level holds then this would mean the price is going to move up from here, as we have saw before I believe the price could make its way up to the previous high (black) around 0.809. There is also another possibility, there is a chance as a double top has formed in the channel that the price is going to test the neckline (red) and if it bounces we could see the price breakout the bottom of the channel. I would update this post once I have got more information to share about the future direction of this currency pair.
by JohnnyPurtoy98
Seeya BitcoinHead & shoulders pattern forming on Bitcoin. There is a demand zone shaded in blue that is acting as the last support. I'm expecting this to break, and break well with volume. A sloping neckline always performs better! Volume is also decreasing on the right shoulder. All signs of a downward breakout. Target is the green line, stops above red line once the neckline breaks. Please give this trade idea a THUMBS UP and I will keep you updated! Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
BITFINEX:BTCUSDShort
by hedgewithcrypto
8
Bitcoin to push towards $8,700 nextHaven't posted a BTC chart in a while. It's been quite the ride so far and expect the bullish momentum to continue. The last few days has seen Bitcoin retrace and consolidate. The selling pressure has not been extreme and likely to be profit taking only. With that said, buying on dips is a good strategy for now. On the 1 hour chart, a possible inverted head & shoulders is forming. This is just the pattern to add to an existing long position on the break of the neckline. The projected target is near the $8,700 area. Volume is already starting to decrease in the right shoulder, which is a lot smaller than the left and ideal scenario for a breakout past the neckline. Please give this trade idea a THUMBS UP and I will keep you updated! Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
BITFINEX:BTCUSDLong
by hedgewithcrypto
6
BTC may be forming a cup and handle.Just my opinion, but with both the 4hr charts rsi and stochrsi well exhausted and well into the overbought zone and the 1 day chart's indicators now just reaching overbought conditions, I don't think we will be able to sustain an immediate breakout of the inverted head and shoulder pattern and a small correction is due to reset these indicator levels before a breakout can be sustained. at the same time we would like to see the price reach $6850 or so before any type of correction or retracement to establish a higher high on the 1 day chart and keep the ball in the bulls court. We can also see a very cup like price pattern has formed on this right shoulder. Also keep in mind that cme futures are set to expire on July 27th. All things considered my guess is that one of the 4hr candles that occur today will hit the $6850 region to complete the rimline of this cup pattern and then for the next 10 days or so we will see it form a handle until those futures expire at which point we will break above the cups rimline, the neckline of the inverse head and shoulder and the symmetrical triangle pattern we are in. Perhaps it will be Q3 which is the bullish one this year.
BITFINEX:BTCUSD
by DrDovetail
1
Sending bullwicks above the inverted head and shoulders necklineLooking at the 1 day chart we see a very promising sign here that the higher low/higher high bull pattern might continue. We need the price action to climb to 6850 or so to form a new higher high on the 1 day chart before the next significant breakdown happens. If so odds are food the following down trend will only form a higher low on the 1 day chart which will continue to allow the bulls to control the momentum. I already exited my position at 6690 and will be setting a stop buy up around 6894 to be safe. I think once we achieve the higher high on the 1 day chart a correction will be overdue and we will likely dip. I'm thinking we won't dip under 6.1k though before the next uptrend and will confirm a higher low at that point. All just my opinion though I could easily be wrong. As always not financial advice. Thanks for reading and best of luck!
BITFINEX:BTCUSD
by DrDovetail
2