Lam Research Pushes HigherLam Research has consolidated after dropping in July, but now traders may think the chip-equipment stock is coming back to life.
The first pattern on today’s chart is the weekly close of $84.74 from August 23. LRCX tried to break that level in September and October without success. But the stock closed above it yesterday as the broader Nasdaq-100 climbed. Is it finally breaking out?
Interestingly, the 200-day simple moving average is in the same approximate location. The stock additionally closed above it for the first time since last summer.
Next is the rounded basing pattern around an earlier peak from July 2023. That may suggest old resistance has become new support.
Finally, MACD is rising. The 8-day exponential moving average (EMA) is also above the 21-day EMA. Those patterns could indicate a bullish short-term trend.
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Oscillators
Use RSI Like a GoldmanYou might be wondering, do the traders at Goldman Sachs use the Relative Strength Index (RSI)? The answer is, perhaps they do, and perhaps they don’t. However, based on my experience, I can confidently say that even the most seasoned and professional traders rely on RSI from time to time.
While it may not be their sole tool for decision-making, it’s often included in their broader strategy due to its effectiveness in identifying overbought or oversold conditions in the market. RSI is one of many technical indicators that can serve as a helpful signal in navigating market trends, and even the best traders find it useful on occasion.
When trading with technical indicators like the Relative Strength Index (RSI), having a clear and structured approach is crucial to maximizing its effectiveness. While RSI can be a powerful tool for identifying potential trend reversals, it’s essential to understand the right conditions and context in which to use it.
Below are some key principles and guidelines that can help you apply RSI more effectively in your trading strategy. Whether you’re a swing trader or a day trader, these tips can help you avoid common pitfalls and make more informed decisions in the market.
⚙️ Keep Settings Simple
Keep the RSI settings minimal to avoid confusion. Stick to the standard 14-period lookback, which is widely used and reliable for most market conditions.
📉📈 Ensure Divergence Occurs Outside of Key Levels
Divergence should only be considered when the RSI reaches extreme levels, typically above 70 (overbought) or below 30 (oversold). This helps to identify potential trend reversals. Divergence at neutral levels (like between 40–60) may not be as effective.
🔥 Base Divergence on Candle Closes, Not Wicks
Always look for divergence based on the closing price of candles. Divergence created by wick movements is unreliable and can lead to false signals. Stick to the body of the candle to ensure accuracy.
⏳ Watch the Lookback Period
The RSI’s default lookback period is 14, and divergence with a gap of more than 14 candles is generally less reliable. Wider gaps often signal weak price momentum and a higher chance of failure, so focus on shorter, more recent divergences for better results.
💧 Liquidity Must Be Taken Before Entering Trades
Liquidity is essential when confirming trade setups:
The first high or low should take out liquidity from higher time frames (such as range highs and lows).
The subsequent highs or lows should take out local liquidity, which can be identified by overbought or oversold RSI conditions. Ensure there’s a clear market structure shift before entering trades.
⏰ Timeframe Considerations for Different Trade Types
For swing trades, focus on longer timeframes like the 4-hour chart to capture larger market moves and trends.
For day trades, the 15-minute timeframe is ideal for capturing short-term price action and finer market details.
🔄 Use Divergences for Trend Reversals, in Confluence with Other Analysis
RSI divergence is best used to identify potential trend reversals. However, it should not be used in isolation. Always look for confluence with other technical analysis methods (such as support/resistance levels, moving averages, or candlestick patterns) to increase the reliability of the signal. Combining multiple tools enhances the accuracy of your trade setups.
Stay sharp, stay ahead, and let’s make those moves. Until next time, happy trading!
EURJPY BULLISH SHARKHarmonic Pattern Trading Strategy:
1. Combine patterns with 2-3 confirmations (e.g., MA, BB, RSI, Stoch) for increased accuracy.
2. Implement proper risk management.
3. Limit exposure to 3% of capital per trade.
4. Exercise caution: Not every Harmonic Pattern presents a good trading opportunity.
5. Conduct thorough diligence and analysis before trading.
Disciplined approach = Enhanced edge.
ADAUSDT - Looks like ADA is forming a beautiful bullish div.Hello to all of you.
This is my first chart post ever. So go easy on me ;-)
I don't want anything from you. I have nothing to sell. I just love ADA.
To me this charts indicates that ADA is forming a bullish divergence. If this is true we could be in for a nice ride. Personally I do as I have always done: I hodl my ADA and prepare to sell a bit every time price evolves positively. That gives me the opportunity to buy the many dips that occurs in every cycle. Remember: No one knows if markeds goes up or down. Nothing can be predicted. But sometimes patterns occur that "normally" leds to a positive outcome. Maybe this setup is one of them.
Thanks to you if you made it this far.
Best regards from public-service.
ASX 200 SPI Futures Test Key Support as RBA Decision LoomsWith disappointing earnings from major names like Westpac and BHP in recent days, and with more than three rate cuts priced for this year, ASX 200 SPI futures look vulnerable to downside heading into today’s RBA policy decision.
They’re now testing major uptrend support—a level that has attracted buyers in recent months. While it’s holding for now, the technical picture is far less convincing for bulls than on previous occasions.
Friday’s false break above the former record highs formed a shooting star daily candle, a clear reversal signal. While the price bounced off the uptrend again on Monday, unlike past instances, this one didn’t last with the price quickly gravitating back towards it.
RSI (14) has diverged from price, flashing a bearish signal, while MACD is curling up and looks close to confirming with a crossover from above.
Everything comes across as heavy.
A break of the uptrend would put the 50DMA in focus as an initial target for bears, with further downside levels at 8280, 8135, and the key 200DMA. A stop above the uptrend would help manage reversal risk.
If support holds, an alternative approach would be to set longs ahead of it with a stop beneath for protection. Potential upside targets include 8546 and 8581.
Good luck!
DS
Retesting Low of Lows on Cameco. CCJThe technical signal has been shown for the bearish side. And it may drop further. There is a tendency for markets to retest an important price level 2 or three times, after which the whole dynamic pivots and we go the other way. There is no way to tell if and when this is going to happen and that is why trading is hard and awesome.
EURUSD Technical Forecast on NFP 07.02.2025Overall Trend & Context:
The EURUSD pair is in an overall downtrend on the higher time frames and has recently been consolidating on the lower times.
Fundamental Considerations for the NFP:
Consensus Forecast (High Probability) - Most analysts forecast a gain in the 169K–170K range, which lines up with recent trends. A neutral result would suggest that the labor market is still solid.
Stronger-than-Expected Outcome (Medium Probability) - If the report comes in well above consensus (eg: above 190K jobs), it could reinforce expectations for a more hawkish stance by the Federal Reserve.
Weaker-than-Expected Outcome (Low Probability) - A result below expectations (eg: fewer than 135K jobs) might trigger a reassessment of the US economic outlook, we will need to watch the markets and prepare for dynamic shifts.
Technical Findings:
Weekly - Bearish and trading well below EMA's.
Daily - Bearish & showing signs of 25 EMA rejection. Previous distribution is holding price at bay.
4 Hour - Strong supply levels holding and trading below the 200 EMA.
1 Hour - Close to overbought levels and LTF distribution is holding.
Important Notes:
DXY is at a previous demand which proved to be a challenge to break through in the past.
GBPUSD & EURUSD can have variations in the short term correlation but the technicals both align, which reinforces our EURUSD narrative.
USDJPY technicals remain bullish on the long term however, the short term is in a downtrend and has reached a daily demand - we could potentially see a bullish reaction from here (based on DXY strength and the negative correlation with EURUSD)
Potential Scenarios & Probabilities:
If the lows at 1.03800 fail we may need to adjust our entry zones based on where liquidity and supply are found.
If price reaches the weaker supply level closer to the release of the NFP we can enter, however there is a chance we could get stuck in some drawdown if supply isn't strong enough to push through.
HIGH PROFILE NEWS RELEASES ARE DOUBLE EDGED IF YOU'RE NOT CAREFUL. YOU DO NOT NEED TO BASE YOUR ENTIRE TRADING CAREER ON IT. STAY OUT IF YOU'RE NOT COMFORTABLE TRADING NEWS.
AS TRADERS, YOUR PRIMARY JOB IS TO PROTECT YOUR CAPITAL - WITHOUT CAPITAL YOU CAN'T MAKE ANY MOVES.
Trade smart.
Hope you all make money if you're trading today!
Apex out!
OANDA:EURUSD FX:EURUSD FOREXCOM:EURUSD OANDA:USDJPY TVC:DXY OANDA:GBPUSD PEPPERSTONE:GBPUSD FX:USDJPY
Sudden Pivot on Twilio.TWLOHuge gap down, followed by a massive bearish candle and a healthy wick. Convincing divergences on RSX and BB%PCT, other indicators being long establish bearish. There may be a bounce off the 2-4 line in blue, but experience dictates that with a gap like that there is plenty more momentum pent up for more down ward motion.
Continuing Correction Arista Net. ANETGoing off the technical picture, there is a general alignment from at least 5 different perspectives. The indicators I use look at the market from may different ways, deriving data from volumes, volatility, stochastics, momentum and simple stats like sigma deviations on the previous. Many cases do not offer a discernible Elliott count or a harmonic, but these are very useful when they are discernible.
NIO Inc May Start a New Trend to the Upside. NIOI really like the divergences on the new low on more than one occasion and an encompassing divergence between the first low and the very last one. This is a common set piece in these type of complex corrections, where the Elliott count proves to be problematic. I am confident of a high chance of a profitable long, because almost simultaneously there is a flip on BB%PCT, VZO and Stoch/RSI, plus a MIDAS line course. I used Fibonacci clusters to paint some stationary goals.
AMC Bouncing Back Up Offf Support. AMCThis appears to be a A Wave of a new zigzag that sent us to low of lows at 3.00 . Now well and truly back out of thee OBOS territory. Generally speaking, A waves do not produce momentum divergences, and this appears to be the case here as well. AB trendline, along with MIDAS has been crossed, BB%PCT crossed zero line a few candles ago and we are bullish otherwise technically.
USD/CAD Slips—Fading Trade Fears, CPI in FocusUSD/CAD is trading heavy ahead of Canada’s inflation report, weighed down by softer US economic data and fading sticker shock from US trade policy headlines. With Canadian data impressing at rates not seen since mid-2024 and January’s steep reversal from 22-year highs increasingly resembling a cyclical top, the key question now is whether this marks the start of a more significant unwind of earlier USD/CAD gains.
The price broke through multiple support levels last week after failing above the 50-day moving average, taking out 1.4270 and 1.4195 before retesting the latter from below over the past two sessions. Momentum indicators like RSI (14) and MACD continue to generate bearish signals, reinforcing the near-term bias being lower.
Beyond 1.4195, downside levels include 1.4090, the December double bottom at 1.3932, and the 200-day moving average. On the upside, 1.4270 has acted as a cap for much of the past fortnight, alongside minor resistance at 1.4372. That zone could prove tough to crack this week without a major escalation in US trade tensions or an ice-cold Canadian inflation print.
On Tuesday’s CPI report, the data will be skewed by a temporary GST holiday, potentially distorting the signal. That raises doubts about whether it will have enough weight to disrupt the prevailing USD/CAD trend.
Good luck!
DS
$SPY February 17, 2025AMEX:SPY February 17, 2025
15 Minutes
AMEX:SPY struggling around 610 levels.
Made ahigh 610.99. But oscillator divergence.
Also, we have a Hl formed at 610.75.
On Monday i expect a retracement to 606-608 levels.
Thus if AMEX:SPY is able to hold 606 levels then for the extension 598.52 to 607.49 to 605 my target of 612 + is possible.
But I expect a retracement first due to divergence.,
Can we enhance the most popular Indicator on TradingView?I describe my implementation of the TTM Squeeze indicator, first coded by Lazybear and that became the most popular indicator on TradingView.
There's gotta be a reason for that to be the most popular, right? I wanted to find out and make it much easier to navigate as well as adding to it with my own touch.
Hope you enjoy it.
BATMAN Formation Gold has appread to be down to 2788 USDThis chart provides a 4-hour timeframe analysis of the Gold Spot / U.S. Dollar (XAUUSD) pair, indicating several technical aspects and current market conditions.
Price Action and Trend Analysis:
Current Trend: The chart shows a recent bearish movement as indicated by the sharp red candle that breaks below the previous consolidation area and moving average lines. This could suggest a potential reversal or pullback in an otherwise bullish context.
Key Support and Resistance Levels:
Resistance is potentially around $2,907 and $2,900, highlighted by the MA Ribbon lines.
Immediate support is near the $2,850 mark, as shown by the lower green zones and moving averages.
Technical Indicators:
Moving Average (MA) Ribbon:
The price has fallen below the MA Ribbon, suggesting a potential shift in momentum from bullish to bearish in the short term. Watch for these averages as dynamic resistance levels on potential pullbacks.
MACD (Moving Average Convergence Divergence):
The MACD line is below the signal line and moving into negative territory, indicating increased bearish momentum. The expanding histogram in the negative region further supports this view.
RSI (Relative Strength Index):
The RSI is near 41, which is below the midpoint of 50, suggesting bearish momentum. It is not yet in the oversold region (below 30), which indicates that there may still be room for further downside.
Volume:
There appears to be a notable volume spike associated with the recent price drop, which can be seen as validating the bearish move.
Market Sentiment and Potential Strategy:
Short-Term Bearish Signal: The break below key moving averages and the recent bearish candle supported by increased volume suggest that bears are currently in control. Traders might consider looking for short opportunities on pullbacks to resistance levels.
Watch for Potential Reversal: Keep an eye on the RSI and MACD for any signs of divergence or flattening that may suggest weakening bearish momentum. If the price stabilizes or rebounds at the $2,850 support, it could indicate a possible reversal or retracement back towards the moving averages.
Risk Management:
Ensure proper risk management strategies are in place, considering stop-loss orders above the recent swing high or around the MA Ribbon resistance levels. Adjust positions according to real-time market feedback and changes in technical indicators.
USD/CHF Weekly AnalysisThe market continues to see USD/CHF as overpriced above the 0.9200 zone.
For the first time this year, we see price printing a weekly close below 0.9052 which was support over the latter part of January 2025.
More importantly, we have just seen a weekly close below the 'big number' 0.9000 and may see further downside.
In addition, the stochastic has now dropped out of the weekly 'overbought' area.
Look for pullbacks and sell setups on your time frame of choice if you agree with analysis.
Betting Trend End for Reddit. RDDTThese are often hard to pick and as a pivot or fade take, it is inherently more risky. The Stop is tight. Never the less Fibonacci cluster of 5 and 2 to 5 show some high probability areas of take profits. In practice we do not use stationary stops or targets, dynamic systems have proven to be more useful.
Gap Down on Soundhound AI. SOUNThere is a sizeable gap that crosses the low of A. We are probably looking at another Zigzag with a fairly shallow correction on A, which is discernibly fairly standard ABCDE. In our experience any gap almost never get corrected pronto, so we can expect more downward momentum on this stock.
SofiTech Rally Not Over Yet. SOFIThe Elliott Wave count is hard on this one. In my experience if your count tell you that you are done with a trend bullish or bearish, then you are probably not. Unfortunately, often enough trend completion is only confirmed much, much later. So, that leaves us assuming that we are still then continuing with the trend. Technical indicators are supportive of this notion and price action trigger is seen with MIDAS line cross.
Zigzag on Coinbase Global. COINText book example of an Elliott zigzag. 3 or 5 wave move, followed by ABCDE retraction to 0.618, fibtime B Wave over 1.0 and now price action confirmed by MIDAS line cross. MIDAS line cross for confirmation, we found, is superior to neckline/trendline cross for confirmation. To play the devil's advocate, this may be a more complex B wave and we might observe more floundering for some time.
Adidas Moving with Momentum. ADIConverging Elliott triangle and three soldiers on price action. MIDAS line cross plus supportive, upgoing vWAP/US combo is reassuring. BB%PCT flip present, plus simultaneous, recent signal throw off by VZO/EshlersStochRSI combo. All of this paints a high likelihood of continued motion to the upside. We may find resistance at the upper triangle trendlines, or establish it as a support and keep moving further up from there.