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Rejection

GBPCHF out of a 5-week congestion period!GBPCHF seems to have the necessary strength to get out of a 5-week congestion phase. that is quite unusual for such a volatile currency pair. Buyers seem to push the price higher, already attempting once to break the resistance formed by the sideways trend. Bad news is that the price is currently also forming lower highs, showing a very tight pennant on the chart. In this case, we need to have a second confirmation by buyers, so we will wait for a stronger action that would push the price out of the long term sideways trend and the short term pennant.
Long
by FedericoSellitti
1
EURUSD rejection on the Ichimoku CloudEURUSD is a currency pair that we were already monitoring in our daily analysis on YouTube. As I mentioned yesterday, I wanted to wait for a better signal because the blue line of the Ichimoku Indicator was heading up for the first time in a while, so not a good sign for a possible short position. We finally had a good rejection on the cloud, with some strength by sellers. In addition, we had a breakout of the previous swing low, even though the price didn't have any strong acceleration, mainly due to lack of volatility during the last period. Overall, this is a good chance to open a trade with the Ichimoku, having also a nice risk to reward ratio.
Short
by FedericoSellitti
1
EURAUD continuation of the downtrendI know, I know. You are not very happy about the 1:1.9 risk to reward ratio :) I want to start the analysis from there. The risk to reward ratio is not very appealing and we usually trade with a ratio that is at least 1:2. The reason I still like this trade is that the down-channel is very steep, this offers the possibility to easily adjust the stop loss and the take profit if the trade proceeds in a favorable direction. This is one of those few opportunities I like to trade with a trailing stop order, since it makes sense to move the stop loss as the trade proceeds, as long as the stop loss remains above the down-channel. Regarding the logic of the trade, right now, there is no action by sellers, so I think it doesn't make sense to open a trade immediately. I will wait for more action by sellers, placing a stop entry order at 1.6050. With the price going above the channel, we will cancel our trade.
Short
by FedericoSellitti
EURUSD to go down, following the descending channelEURUSD is at the top of a descending channel, so we can try to find any action by sellers, confirming that this is a good level to get in with a short position. At the moment, on the H4, we have a good upper shadow hitting the upper part of the channel, but I would like to wait for a stronger action, so I place a sell stop entry order at 1.1110, so we can verify if sellers are able to push the price lower than this. Price is still more than 20 pips far from our order, so let's see if it is going to be triggered.
Short
by FedericoSellitti
2
EURAUD trading the rejection at the top of the rising wedgeEURAUD is following a rising wedge and the setup of the moving averages also show that there is an uptrend. So why am I planning a short position? The rising wedge is still quite large and this gives the opportunity to try to find a rejection at the top of it, with a great risk to reward ratio. Also, the moving averages are quite close to each other, so with a rejection at the top, the setup could change quite fast, so I wouldn't rely that much on that in this situation. I structured the trade to trade the rejection at the top and also a breakout at the bottom, but I would start to take part of my profits if the price reached the bottom of the rising wedge.
Short
by FedericoSellitti
1