Eurgbp, more downside to come,*Fire in the Hole*!
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[EDU] Trading the Chart pattern SeriesTrading the Chart pattern
Basics and Advanced Concepts
Anatomy of Head and Shoulders
Head and shoulder could possibly be one of the most common chart pattern we see on the chart. So what makes up this pattern?
They are:
1. Left Shoulder:
> The left shoulder forms as the price initially rises and then experiences a pullback. This creates the left peak of the pattern.
> The pullback is typically less severe than the subsequent pullback after the head is formed.
2. Head:
> The head is formed when the price makes a higher peak than the left shoulder, indicating a strong upward movement.
> The head is the highest point in the pattern and is often characterized by increased trading volume.
3. Right Shoulder:
> Following the formation of the head, there is another pullback in price, creating the right shoulder.
> Similar to the left shoulder, the right shoulder is usually lower than the head and is accompanied by a decrease in trading volume.
4. Neckline:
> The neckline is a horizontal line that connects the lows of the left shoulder, head, and right shoulder.
> The neckline serves as a support level, and a significant break below this line is considered a confirmation of the pattern.
This is Shown in Figure 1
Advanced Concept
Of course, the world is not Perfect, and so is the financial market. "textbook" head and shoulder patterns would be a small fraction of the head and shoulders formed in the market. Therefore, we should also be aware of "catching" these other variants!
Complex head and shoulder
Figure 2
> could be one that has more than 1 left shoulder.
> Right shoulder made a new Lower Low, tell tale sign this uptrend is weakening
Extended head and shoulder
Figure 3
> the left and right shoulder showed extended stretch in terms of duration but still it is a head and shoulder in nature
> at the same time, this pattern also brings out to yet another variation, head and shoulder no necessarily is a reversal pattern. In this case it is a trend continuation pattern!(if you didnt realize that)
:)
Head and shoulders pattern as continuation Pattern
Figure 4
> over here we have a trend continuation pattern of head and shoulder
> 2nd, it has a slanted neckline
> other than that it is pretty much a classic head and shoulder.
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Eurcad potentially to flip if eur weakens**Find out more from my Tradingview Stream this week**
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Gbpusd should be among the stronger ones..If usd still weakens, likely more bias to go on long on GU if it has pullbacks!
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Usd daily at 50% fib but still weak..Could possibly form a double bottom here..or just keep crashing down....will see or react accordingly!
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Gchf could be looking at some more downside if...if the break of 1.10 is there for real, more downside will be coming in i believe.
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Eurcad potential turning lower if 1.47 break...More downside to come if 1.47 lost.potential double tops
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AN turn lower as previously mentioned..now..I believe it would have more downside, but do take note of the minor support on the daily and could bounce to pullback before going down further.
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Usd still in the R zone on d1...I am looking at how this wedge play out on h4 for USD, whether is it gonna push higher to this daily channel high or break lower to go down...
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AudNzd weakness is coming...AN should be making a turn down, already showing signs...Watch for it.
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EurAud more downside to come But...But do take note of the key support area now, bias is still on short side.
Likewise I am also bearish on GbpAud!
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A Near term reversal on USD indexWith the possible holding rate for USD, and poor nfp data, seems like USD is taking a turn....
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An eventual target of 1.48?Watching for favorable setup to long.How about you?
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UsdChf watch out for rejectionTechnically Uchf came back to its R zone, 4 up candles on daily so far. careful with this zone. or the uptrendline later on.
Of coz act accordingly as PA unfolds over the week.
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Usd might just ding dong again...play with it...If the range persist as shown, then play along with it...
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EURAUD some more upside to 1.686?Eur has been pretty strong past period against aud, has been in my watchlist /tradelist as well.
Should have bit more upside. Let's see
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EURGBP uptrend opens up, more upside to come?
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UsdChf weakest among allLooking at Uchf , if usd is to turn weak, will look more into shorting this pair
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A potential turning for USD?Things have not turn out to be bearish yet, but a potential h&s could be in play if 105.50 zone is to give way. Watch for it!
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Gcad downwards move,more likelyMore downwards move on Gcad. I have mentioned about Eurcad last week. This time right, I am seeing more weakness on Gcad.Let's see what happen next week
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SNP500 heavy to the downsideLooking to short for SNP500
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Euraud more upside to come?Watching for it to break up higher from here, let's see.It might also sideway or go lower to test the up trendline...
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Usd pullback and broke up,uptrend intactAs mentioned about USD pullbacking, it did and the uptrend should be back in place again!
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