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Reversalpattern

1INCH at reversalOk, if you watch the chart at daily timeframe you can see the daily candlestick closed as an hammer on the bottom, a clear bullish candlestick however I'm presenting here the 4h chart as more explicative. Beside the reversal candlestick billinger bands are squeezing (not shown here) and Stochastic momentum indicator presents a bullish DIV, moreover VLPR shows there's a good requested over current price, meaning this is going up. On the other side volume is kinda flat... not very promising to be honest, however before sudden movements it is always like this. If you don't have 1INCH this is a good entry point, stop loss at 3.93USDT (my support line), I'd say the current price 4.43 is a good entry price. Good luck
Long
by Shotokhan
EURUSD | Perspective for the new week In the wake of a stronger than expected US labour market report for October 2021, the Euro appear to be taking a bounce from fresh annual lows under $1.1520. Despite citing a Double Top pattern with a successful Breakdown of Neckline confirming a reversal pattern, I am looking forward to taking a "quick" countertrend in the coming week with my eyes still on the long-term expectation of a Bearish momentum evolving. Tendency: Uptrend (Bullish) Structure: Supply & Demand | Reversal pattern (Double Bottom) Observation: i. Since the beginning of September 2021, the Euro recorded a 3.39% drop against the Dollar and this is represented by the prior leading price action (Bearish Impulse leg). ii. And since hitting bottom around $1.15200, the Bearish momentum appears to fizzle out as Buyers find what looks like a Demand level at this zone in the last 6 weeks to incite a Correction phase. iii. It is also appropriate to note here that finding a bottom in a zone ($1.15200 area) that has a memory as far back as 2017 for the demand for Euro might not be a coincidence and seems to be a very good opportunity to take a "quick" countertrend😊. iv. With recent structure and considering the Double Top pattern identified on the Weekly chart, I suspect that this potential correction phase will stall at the Neckline zone to incite a risk of further decline for the Euro. v. Double Bottom: We do have a highly bullish technical reversal pattern forming at this juncture in the market with structure revealing a change in trend and a momentum reversal from the prior leading price action (major downtrend). vi. Even as we await a confirmation which will happen if the price breaks out of resistance level @ $1.16750 (Neckline of potential Double Bottom) which equals the high between the two prior lows; I am willing to take a long position at a break and stay above of $1.16100 with an opportunity to add to the existing position at a Breakout/Retest of Neckline in the coming week(s)... Trade consciously!😊 Trading plan: BUY confirmation with a minimum potential profit of 150 pips. Risk/Reward : 1:4 Potential Duration: 5 to 12days NB: This speculation might be considered to make individual decisions on the lower timeframe. Watch this space for updates as price action is been monitored. Risk Disclaimer: Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment. I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.
Long
by darcsherry
8
NZDUSD | Perspective for the new week | Follow-up detailsWe experienced close to 100pips move in our direction following my last speculation on this pair (see link below for reference purposes) and a Breakdown of Demand structure (a level that held price "supported" throughout last month) early in the month of November 2021 insinuates that the Kiwi might witness a risk of further decline in the coming week(s). From a fundamental perspective; a stronger than expected U.S. jobs report might bring the Fed closer to a rate hike which could put further pressure on the NZD/USD in the coming week(s), Let's see! Tendency: Downtrend (Bearish) Structure: Breakdown | Supply & Demand | Reversal pattern (Double Top look-a-like) Observation: i. After breaking out of Double Bottom Neckline on the 14th of October 2021 (see daily chart ), the Kiwi recorded a 3.42% growth over the Dollar to set the tone for a Bullish momentum in the long term. ii. However, after testing a temporary peak @ $0.72190, the price took a gradual nose dive, leading to a significant Breakdown of Key level during last week trading session. iii. As expected, I stated in my last speculation on this pair (see link below) that we should be getting ready for a possible correction phase of the Impulse leg which might retest the Neckline of the Double Bottom that instigated the previous rally (see daily chart) to confirm a trend continuation setup. iv. The appearance of a highly bearish technical reversal pattern on the chart which looks like a Double Top at $0.72190 & $0.72180 followed by a couple of Breakdowns of $0.71300 in the last week could be a sign that emphasizes the selling pressure accumulating under the Key level. iv. In this regard, I shall be looking out for selling opportunities below Key level with an opportunity to add to my existing position should price Breakdown/retest of $0.70850... Trade consciously!😊 NB: It is very possible that the early hours/days of the new week might see a price climb into the Supply zone cited within $0.71850/0.71550 to incite further decline. Trading plan: SELL confirmation with a minimum potential profit of 120 pips. Risk/Reward : 1:4 Potential Duration: 3 to 7days NB: This speculation might be considered to make individual decisions on the lower timeframe. Watch this space for updates as price action is been monitored. Risk Disclaimer: Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment. I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.
Short
by darcsherry
NZDCAD instant short order Hello traders. this time I mapped NZDCAD with a risk reward ratio of 1:6.5 if it is in full accordance with the farthest target. the assumption is that if you risk 2% of the capital, then when the price reaches target 1, you have saved 1:3 if it is according to the plan, the farthest target saves profit is 12% of the capital. this analysis is not an invitation ... please make an entry consideration . and if it is useful, you can like it and share it with friends. thanks good luck
Short
by RMZ4x_RMZFC
USDJPY | Perspective for the new weekThe US dollar appears to have regained bullish traction as we witnessed a bounce back and forth before the price finally broke out of the Key level @ Y130.800 to reveal buyers strength at this juncture in the market. As we all have noticed that the Yen is being sold off against almost every major pair in recent time, and following Higher US bond yields and hawkish Fed expectations the scenario painted here is not a different one at the moment. The present market structure could probably explain what is going on with the Japanese yen as I look forward to a buying opportunity on this one in the coming week. Tendency: Uptrend (Bullish) Structure: Breakout | Supply & Demand | Trendline Observation: I. Since mid-September 2021, the USD recorded a 5.05% growth over the Yen to set the tone for a Bullish momentum in the long term. ii. Despite citing a reversal pattern after hitting a peak at Y114.700 in mid-October 2021; Sellers have been finding it difficult to push the price below Y113.400. iii. Bearish Trendline: A visual representation of resistance line drawn over pivot highs reveals the prevailing direction of price and speed of price in the last couple of weeks. iv. However, the Y113.400 Level has kept price "supported" in the last couple of weeks to suggest a decline in Bearish momentum. v. In this regard, it is obvious to state here that buyers have continued to pick prices up from Y113.400 hereby making this zone a significant demand level in the meantime. vi. Following a Breakout of Key level @ Y113.800 during last week trading session, I shall anticipate a Breakout of Bearish Trendline for signal confirming a rally in the coming week(s). vii. Even as above Key level remain a yardstick for taking a long position, I have identified a "New Demand level" on the chart for trading opportunities should the price plunge... Trade consciously!😊 NB: Considering the reversal pattern identified after hitting Y114.700, It is worthy to state here that a significant Breakdown of Y113.400 should render the narrative invalid hereby welcoming an opportunity to short the pair temporarily (correction phase) at a retest of the Demand zone broken. Trading plan: BUY confirmation with a minimum potential profit of 100 pips. Risk/Reward : 1:4 Potential Duration: 4 to 10days NB: This speculation might be considered to make individual decisions on the lower timeframe. Watch this space for updates as price action is been monitored. Risk Disclaimer: Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment. I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.
Long
by darcsherry
3
USDCNH | Perspective for the new week | Follow-up detailsWe witnessed a 1,000pips run in our direction since my last publication on this pair (see link below for reference purpose) and the confirmation of reversal set-up at the Breakout of Neckline (CNY 6.39500) during last week trading session is the final straw that broke the camel's back for me. Higher US bond yields and hawkish Fed expectations shine the light of hope on the Greenback and we could witness a continued bullish momentum as investors brace for the Fed's meeting next week. Tendency: Uptrend (Bullish) Structure: Breakout | Supply & Demand | Reversal pattern (Double Bottom) Observation: i. It has been a mix of Bearish momentum for the USD since the beginning of this year. ii. Finding a bottom twice at CNY6.36800 within the month of October 2021 - this level in recent time sharing memory for Demand (May 2021) could be an opportunity to take advantage of a short term rally. iii. Double Bottom: The appearance of an extremely bullish technical reversal pattern describing a change in trend and a momentum reversal from prior leading price action may not be a coincidence. iv. And since testing the demand zone the second time, the price continued to find higher highs that culminated in a Breakout of Neckline @ CNY6.39500 on Friday to signify the potential direction majority might be heading in the coming week. v. With this development in place, it will be appropriate that we take advantage of this potential rally at the retest of Neckline. vi. The early hours/days of the new week might witness a further plunge in price to test the Neckline @ CNY6.39500 or below to incite Trend continuation. vii. Hence, above the Neckline remains a comfortable level to take a long position on this pair. NB: Please note that the narrative so far supports a temporary bullish momentum and this is so after putting into consideration the long term downtrend perspective... Trade consciously!😊 Trading plan: BUY confirmation with a minimum potential profit of 300 pips. Risk/Reward : 1:4 Potential Duration: 2 to 7days NB: This speculation might be considered to make individual decisions on the lower timeframe. Watch this space for updates as price action is been monitored. Risk Disclaimer: Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment. I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.
Long
by darcsherry
Market Structure Simplified It is easy to get confused with overflowing information about market structure in the trading world. To simplify things we have come up with a way of analysing market structure simply by marking each high or low. In this particular example, you can see that higher lows were being created all the way down the bearish trend, so we knew that it was a seller's market UNTIL we got our break of structure . When the BOS became apparent, we began to shift our attention to the possibility of reversals and used our magic tool, the Fibonacci. This technique can be used in any trend, try it for yourselves! Please, support this post with a like and comment!
Editors' picks
Education
by AlkalineFX
84
NZDUSD | Perspective for the new week | Follow-up detailsMy last speculation on this pair earned us over 200pips before the Bullish momentum began (see link below for reference purposes); Despite a long term Bullish perspective, I am beginning to see a short term opportunity to do a temporary sell on the Kiwi in the coming week as the Bears gear to step into the game. Tendency: Downtrend (Bearish) Structure: Supply & Demand | Reversal pattern (Double Top) Observation: i. After breaking out of Double Bottom Neckline on the 14th of October 2021 (see daily chart), the Kiwi recorded a 3.42% growth over the Dollar to set the tone for a Bullish momentum in the long term. ii. As it is now, it appears we are about to witness a correction phase into the Double Bottom Neckline (see daily chart) to incite a bullish trend continuation. iii. Double Top: An extremely bearish technical reversal pattern forming after price tested a peak two consecutive times with a moderate decline between the two highs ($0.72100/0.71900) is an emphatic signal that awaits confirmation in the mode of a fall below the support level which is also equal to the low between the two prior highs (Neckline @ $0.71500). iv. At this juncture, the Breakdown/Retest of the identified Neckline shall welcome an opportunity to open a position in the coming week. v. In the midst of a potential Breakout/Retest of Neckline, there is a possibility that the price might do a climb to test the identified "New Supply level" within $0.71800/0.71500 in the early hours/days of the new week to incite further decline in price... Trade consciously!😊 Trading plan: SELL confirmation with a minimum potential profit of 150 pips. Risk/Reward : 1:5 Potential Duration: 4 to 10days NB: This speculation might be considered to make individual decisions on the lower timeframe. Watch this space for updates as price action is been monitored. Risk Disclaimer: Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment. I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.
Short
by darcsherry
EURJPY | Perspective for the new week | Follow-up detailsWith over 400pips in the kitty from our last speculation on this pair (see link below for reference purposes); It appears that the correction of the Impulse leg has begun following the Breakdown of JY132.800 and JY132.300 level respectively. As the Euro runs out of steam against a potentially strong Yen from a short term perspective, the current position in the market is laced with some warning signals that proposes a near-term short position in the coming week(s). Tendency: Downtrend (Bearish) Structure: Supply & Demand | Trendline | Reversal pattern (Head & Shoulder) Observation: i. Since mid-September 2021, the Euro recorded a 4.34% growth over the Yen to set the tone for a Bullish momentum in the long term. ii. And since hitting a peak @ JY133.500 during last week trading session, we witnessed a downward spiral that evolved into a Head & Shoulder look-a-like with an emphatic signal for a reversal. iii. Head & Shoulder: The appearance of a baseline with three peaks, where the outside two are close in height and the middle is highest reveal the possibility of the risk of a further decline in price in the coming week which could also be a correction of the Bullish momentum that began in September 2021. iv. With the recent Breakdown of the JY132.200 (a level that held price "supported" in the last 7 days) on Friday sets the pace for the Bears as confirmation of the Head & Shoulder pattern appears to be sealed! v. The early hours/days of the new week might see a price climb to test the Neckline of Reversal pattern @ JY132.300 or climb as far as JY132.800 which is within the New Supply niche identified on the chart to incite further decline. vi. Coupled with the Key level, the Bearish Trendline should serve as a yardstick to mitigate against taking an unnecessary short position in the coming week(s). vi. Please note that the Bearish narrative is believed to be a short term perspective aiming at a rejection of Neckline of the Double Bottom sighted on the Daily/Weekly time frame (see link below for previous publication in the link below for reference purposes) for a Bullish continuation hence it is appropriate that we stay on alert for unsuspecting Bullish incitation considering the facts that this is a long-term Bullish expectation ... Trade consciously!😊 Trading plan: SELL confirmation with a minimum potential profit of 180 pips. Risk/Reward : 1:5 Potential Duration: 2 to 5days NB: This speculation might be considered to make individual decisions on the lower timeframe. Watch this space for updates as price action is been monitored. Risk Disclaimer: Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment. I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.
Short
by darcsherry
GBPUSD | Perspective for the new weekDespite long-term Bullish expectations on this pair, the Pound appears to be on the verge of a slide amidst Brexit trade deal worries. The identification of reversal candles in the last days of last week trading session is a reflection of the news informing the possibility that the European Union could terminate the post-Brexit trade deal if the U.K.'s disagreement on the Northern Ireland border deepens. With price action contained within a Descending channel in the last four months, I look forward to the breakdown of the confluence - Key level @ $1.37500 and Bullish Trendline to short the Pound in the coming week(s). Tendency: Downtrend (Bearish) Structure: Supply & Demand | Descending Channel | Trendline | Reversal pattern (Double Top) Observation: i. Since the beginning of the month of October 2021, the Pound rode on a Bullish Trendline to test the $1.38350 zone during last week trading session. ii. The visual representation of a support line drawn under pivot lows revealed the prevailing direction and momentum of price action in the last three weeks. iii. However the appearance of a reversal set-up on the lower time frame immediately price hit the $1.385000 zone could be a clue that we might be on the verge of a risk of further decline in price. iv. Double Top: As stated above, the extremely bearish technical reversal pattern in play after the price reached a peak two consecutive times ($1.38350 & $1.38320 respectively) with a moderate decline between the two highs is awaiting further confirmation in the form of a breakdown of Neckline @ $1.37500 which is also a Key level. v. In the coming week, it is appropriate that we look out for further confirmation which will happen if the price falls below the confluence of a Key level and bullish trendline @ $1.37500 (Neckline of Double Top) - a level which also equals the low between the two prior highs. vi. It is also worthy to state here the significance of the overall Bearish set-up after the price broke below the $1.9500 zone in mid-June 2021. This level later witnessed multiple rejections that sent price spiralling downwards within a descending channel. vii. Connecting the lower highs and lower lows of price action with parallel trendlines since the beginning of June 2021 is a consolidation phase that reveals an underlying downward trend masked within a Descending channel. vi. In this regard, I shall be looking forward to taking a short position below the key level @ $1.37500 in the coming week to be on the safe side with an opportunity to add to the existing position at a Breakdown/Retest of $1.36000. NB: All this been said, it is pertinent to state that if price breaks out of Channel to the upside the narrative so far shall remain invalid as a correction of the Breakout shall signal an opportunity to join a potential rally... Trade consciously!😊 Trading plan: SELL confirmation with a minimum potential profit of 250 pips. Risk/Reward : 1:4 Potential Duration: 4 to 10days NB: This speculation might be considered to make individual decisions on the lower timeframe. Watch this space for updates as price action is been monitored. Risk Disclaimer: Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment. I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.
Short
by darcsherry
6
NVDA: I warned you about the "Gap Reversal Ritual"!Hello traders and investors! As crazy as this sounds, but after almost one month, NVDA did exactly what we expected. It confirmed our theory about the “ Gap Reversal Ritual ” which we talked about in our last analysis ( link below), and now, it filled all its previous gaps, as we thought (I told you, I’ve never seen this structure failing). It only did one more gap after my previous analysis, which is something acceptable and this didn’t ruin the thesis at all – it just reinforced it . The reversal pattern that triggered the Gap Reversal Ritual was this Inverted Head and Shoulders , which worked as a confirmation . Now, we are close to the previous resistance at $ 225, and we see a Trap Zone , as the 21 ema is going up, squeezing the price against the resistance. If we are going to lose the 21 ema, or break the resistance, we don’t know yet, but we can work with scenarios in the daily chart. If we break the resistance, NVDA will probably seek the ATH again, as the momentum would be very strong. If we lose the 21 ema in the 1h chart, we'll probably seek the 21 ema in the daily chart. Now the situation on NVDA is not as easy to read as it was last month, but we can still work with targets. If you liked this analysis, remember to follow me to keep in touch with my daily studies on stocks and indices. Have a good day.
NASDAQ:NVDA
by Nathan_The_Finance_Hydra
3
PLTR: It found its bottom! What to expect next?Hello traders and investors! Let’s see how PLTR is doing today! First, in the 1h chart, we see a crystal-clear bull trend, as it is doing higher highs/lows. The trend is not as strong as we would wish for, but it is looking good. The $ 24.71 is a key point for us, as it was the previous top, and it is supposed to become a new resistance for us, and at the same time, a pivot point. Now, let’s see the daily chart: Since PLTR found a support at the gap area, it has been trying to react. The reaction in the 1h chart it is a good start for a possible reversal in the mid-term, but it feels like the $ 24.71 is the most important price level for us here too. The $ 24.71 is a pivot point, and it is close to the 21 ema in the daily chart, which is still falling and pointing downwards. By breaking these 2 resistances, PLTR could easily fly again to the $ 29 area, as we don’t have any other meaningful resistance until there. There’s something missing, which is the volume. This low volume is depressing, but the price action is clear. We have some very good signs on PLTR, but we must wait for more confirmation. If you liked this analysis, remember to follow me to keep in touch with my daily updates! Have a good day.
NYSE:PLTR
by Nathan_The_Finance_Hydra
9
What Does the Inverted Hammer Candlestick Pattern Mean? Hello Traders! Have you ever wondered when will a strong trend end? Do you struggle to spot candlestick patterns that potentially signal when the bulls or bears might take over? Take a look at this example of EUR/CAD and let's see how the trade plays out! :) About the Inverted Hammer Candlestick Pattern and Why It Forms: The Inverted Hammer is a bullish reversal candlestick pattern. It occurs when the price has been falling and suggests the possibility of a reversal. Its long upper shadow shows that buyers tried to bid the price higher. However, sellers attempted to push the price back down. Since the sellers weren't able to close the price any lower, this is a good indication that everybody who wants to sell has already sold. And, if there are no more sellers, who are left? Buyers! And just an important observation, the Inverted Hammer has a small real body, and has a large upper shadow with a small or no lower shadow (also known as "wick"). Would you like to receive more "live charting" tutorials like this?? Comment below and let us know! :) Happy Trading!
Education
by BKTradingAcademy
2