Side Trading range.POSH recently started trading through an IPO and got utterly destroyed. It has now been hovering around its IPO price of $42 and it looks like the side trading will continue until maybe the next quarterly report.
This is going to be a good range trade to profit off of for the time being between $38 - $48 and may re touch the lows of $33 depending on overall market conditions.
Secondhand retail business is popular and profitable for POSH and their business model is actually very easy to use despite what the bear say. I call that this is the bottom for the company as they are growing 40% quarter over quarter and its only a matter of time before wall street warms up to it.
Good Luck. Always do your own Due Diligence.
Sidewayconsolidation
BTC-Welcome to a boring, tricky, sideway market phase !! Hello trader,
good mood and profitable deals!
If you're new in the game,and you are interested in my plan, check out my previous analysis ( link below ) :
BTC fractal analysis! bigger correction is comming ?
Altcoin session is comming !!
BTC Crypto Hype - MA fight !!
BTC Crypto Hype II - Fractal play !!
BTC Crypto Hype III - The top is set -618 play !!
BTC 2017718 fractal- - We'll be waiting longer for new ATH !!
WELCOME TO A BORING ,TRICKY,SIDEWAY MARKET PHASE !!
It is better to assume that BTC will no longer be the hoped-for monetization machine in the near future! , stophunts, low volatility!
So very difficult to trade, and with a lot of experience in small time units, that's why I'll only call long and short daytrades in the near future!
If you are one of those who got on the heights for the first time, don't be discouraged. Since BTC has become an indispensable part of the markets, unlike in 2018, I strongly assume that BTC will still go extremely high. It will only be his take time !
I would recommend that you switch mostly to other markets, educate yourself, and observe!
EVER HEARD FROM THE 90-90-90 RULE
Maybe a little exaggerated, but still consistent. 90% of all new market participants lose 90% of their portfolio in the first 90 days!
The wheat will be separated from the chaff, are you ready to work hard on technology and psychology?
EDUCATION POST, VERY IMPORTENT
I will expand the subject week by week
It's crazy what you have to get hold of in chats when you call words like end of rally, or the bubble has burst.
Even if I called these movements correctly in April, check it out. The crypto scene is a lot too emotional !
Even WARREN BUFFET didn't want to go to crypto, because he just doesn't feel like messing around with supercilious beginners. No descent from beginners. I just call on to be prudent and not to act on opinions!
ON THE TECHNICAL SIDE
Aaccording to the ABC what exactly ended on the 1.618 extension and the 1D MA300, I expect a short-term recovery, but could still turn into a 12345 wave still nasty. Be it as it comes, everything below 11k would completely destroy the structure, but also very unlikely !!
alternative.me
Retail trader in extreme fear 11.
Not far from the ATL. A confirmation that we could briefly, massively drop before a long sideway action begins
I would like to mention that all I post are just options and my own opinion !
Always trade with SL, and do not risk more than 1% of your portfolio (max 3%) per trade.
Discipline is the key to success !
Trade setups, no opinions !
Unfortunately, my english is not so good and I work with google translate, but if you have any questions I will be happy to answer them .
My followers have been making a big ride with me since I posted.
One of the few who called this big correction at the beginning of April .
I am a private person and am available for questions almost 20 hours a day, I would also be very happy to TV tokens :)
If you like my posts smash the like button, comment or follow me.
Thanks for reading my ideas,
Trade save!!
BTC selloff was a bear trapBTC selloff was a bear trap,
BTC has managed to form a double down,
seems most likely to go sideways for a while before it attempts another run,
ALT trading will be interesting during this time.
Sideway Consolidation In trading there's a common saying that the market will either goes up or down, that statement isn't true.
What's true is that when a market consolidates, it will definitely break out of the consolidation. You can wait for the break and close beyond the trendline and start planning your trade.
GBPUSD-Weekly Market Analysis-Mar21,Wk4GBPUSD is in a sideways consolidation. This setup allows us to trade within the zone(green box). The setup is safer when we are shorting from the top of the green box, than buying from the bottom of the green box, and the reason for that is the previous bearish trend which coincides with the starting point of Point X on the Bearish Shark.
However, if you are an aggressive trader, buying within the box can work as well and in the long run as long as you aren't flustered nor overtrade, you will be profitable.
USDJPY-Weekly Market Analysis-Jan21,Wk4An emerging Bearish Bat Pattern formation completes at 104.00. Although it is a nice Price Action Level, it may violate the sideway consolidation upper-trendline.
That being said, on the 1hour chart, it can have the bearish bat formation and not breaking the integrity of upper trendline as long as the market turns and close below the trendline before the close of the 4-hours candle.
I'm looking at a bearish Dollar on the short-term.
EURUSD 4H FADE ENGULFING STRATEGYEngulfing Trading Strategy
The engulfing pattern is fairly regular in its occurrence. Appearing regularly means that a lot of the time, it simply won’t work. Statistically speaking, candlestick patterns have a high failure rate, which is why we come with the idea to fade the engulfing bar pattern. Of course, candlesticks can indeed be useful--but advanced trading strategies will require you to look beyond these basic charts and think deeper.
To develop an effective engulfing trading strategy, we need to establish a proper framework to stack the odds in our favor.
Step #1 Spot a Sideways Market
The first thing we want to look for is a sideways market where no one is in control.
This is very important because it’s setting the stage for price manipulation. The premise behind the typical price manipulation is based on the core idea that smart money needs buyers when they want to sell and they need sellers when they want to buy.
In this regard, our goal is to identify price areas where the trading volume is flat.
Usually, in ranging markets, volume remains mostly flat.
Since the market is range-bound around 75% of the time, it will be easy to spot a sideways market, especially on the intraday charts which are prone to exhibit more noise.
The natural flow of the price dictates that sooner or later we’re going to see an expansion in volume, which brings us to the second step.
Step #2 Localize the Engulfing Pattern
The ranging price action needs to be followed by the engulfing pattern.
Going on with our EUR/USD chart, we can spot a bearish engulfing pattern.
Since we’re still in a range the sellers of the engulfing pattern need to overcome a lot of support/resistance levels that were built-in during the consolidation phase. What happens is that the sellers who got tricked to enter the bearish engulfing pattern are now trapped inside a consolidation zone.
One of the first signs that selling the engulfing pattern was a bad idea could be that we didn’t have enough profit margins.
Smart money love to create these types of price deceptions.
How these price deceptions work is very simple.
The smart money needs to create a sudden price movement so that it attracts the retail eye to enter the market. Once the retail trade bites the bullet, smart money only needs now to bid the market higher and cause everyone to panic. This in return will trigger more sell stops on the upside and subsequently, the upside move gets amplified.
Now, you might be asking yourself why all the fuss to trick the retail traders?
Well, it comes down to two things:
The market is a zero-sum game, so every transaction needs to have a counterparty.
And, secondly, smart money needs liquidity to execute their big trades.
Now, you get the idea of why smart money can use the textbook patterns to trick the retail traders.
Next, we need to establish how the engulfing trader strategy works.
Step #3 How to Fade the Engulfing Pattern
We have a clear signal to enter the market when to price breaks above the high of the bearish engulfing pattern. Normally, traders would sell at the break of the low so we’re doing the exact opposite.
Once the price deception is completed, we can see smart money buying aggressively.
As a general rule, once we break the high of the bearish engulfing pattern, we should see momentum picking up to the upside. If we see this type of price behavior we’re almost sure we have got a good trade.
The next step is to establish how to manage risk, i.e. where to hide our protective stop loss and when to exit the market.
Step #4 Where to Place Stop Loss
The stop-loss strategy is quite simple.
We hide our protective stop loss below the bearish engulfing bar.
If this indeed was a price manipulation set by the smart money, then the price should not break below the bearish engulfing candle low. However, since we can’t be 100% in control of what the market does in the eventuality it breaks below the low we want to get out, which is the stop-loss order job to do for us.
Step #5 Where to Take Profit
Now, in terms of take-profit….
If you want to take your trading to the highest point of success, you need to be able to maximize your profits with each trading opportunity.
The good news is that our take profit strategy is quite easy to implement.
You’ll have to take profits along the way and scale-out of your position as the trend matures. This ensures you’ll benefit from the entire price move.
Conclusion – Engulfing Bar Trading Strategy
In summary, the engulfing pattern trading strategy gives you a chance to trade along with the smart money and profit from trapped retail traders. Most traders will lose money when trading candlestick patterns but with a little bit of twist, you can turn the odds in your favor. And, that’s precisely what our easy guide to trading the engulfing pattern is aiming for.
Here is a summary of what you have learned so far:
The textbook engulfing pattern and how it works.
How to interpret the price manipulation around the engulfing bar.
How to trade along with the smart money.
Only fade the engulfing pattern that develops inside a sideways market.
How to maximize your profits by scaling out of your position.
Engulfing Trading Strategy - The Fade
The engulfing trading strategy will give you the skills you need to become a better trader. Through this guide, we’re going to take a deeper look into what exactly is the engulfing pattern and how understanding this particular pattern can improve your outcomes as a trader. Furthermore, we’re going to show you how to master the engulfing bar trading strategy with a simple twist.
Don’t worry if you already know how engulfing trading works, we have some additional information for you as well. This will strengthen your existing knowledge about the engulfing candle trading strategy and help you find new opportunities to succeed as a trader.
How we interpret the engulfing pattern can provide us with a further understanding of the current market sentiment, whatever form it might take. In return, this can help us better assess the probabilities of success behind each individual bearish and bullish engulfing pattern.
Table of Contents
1 What is the Engulfing Pattern?
2 How to Trade Engulfing Pattern
3 Why the Engulfing Pattern Works?
4 Engulfing Trading Strategy
4.1 Step #1 Spot a Sideways Market
4.2 Step #2 Localize the Engulfing Pattern
4.3 Step #3 How to Fade the Engulfing Pattern
4.4 Step #4 Where to Place Stop Loss and Take Profit
5 Conclusion – Engulfing Bar Trading Strategy
What is the Engulfing Pattern?
In technical analysis, the engulfing pattern is multiple candlestick patterns (2-candle pattern) that can signal a trend reversal or a trend continuation depending on where it develops in relation to the prevailing trend.
While you can find this candlestick price formation by using the engulfing pattern indicator, you can easily spot the pattern with your naked eye.
There are two types of engulfing patterns:
Bullish engulfing pattern.
Bearish engulfing pattern.
Being able to identify the engulfing pattern can help us time the market.
So, how do we identify the bullish engulfing pattern?
The bullish engulfing pattern is a combination of one bearish candlestick followed by a bullish candlestick that engulfs the entire body and wicks of the first candle. This shows that, generally, the broader market is moving in a positive direction.
Naturally, it signals a potential reversal of the prevailing trend.
On the other hand, the bearish engulfing pattern is the opposite of the bullish engulfing pattern. The bearish engulfing pattern can signal the possible start of a new downtrend. While these engulfing patterns do occur in the opposite direction, they are still governed by the same underlying principles.
Moving forward, let’s see the different ways how to trade the engulfing pattern.
How to Trade Engulfing Pattern
To exemplify how the engulfing pattern works, we’re going to showcase how to trade a bearish engulfing pattern. The opposite will be true for the bullish engulfing pattern. Understanding the difference between bullish patterns and bearish patterns will be key to leveraging engulfing patterns to your advantage.
As per the textbook rules, we first need to wait for the second candle of this price formation to close. A close below the low of the first candle shows a stronger bearish signal.
Secondly, the engulfing pattern gets confirmed once we break and close below the low of the second candle. The way we trade it can be broken down into two strategies:
Either sell right away when we break below the low.
Or, a more conservative approach would be to wait for a candle close below the low.
Note* As a general rule, only enter once the pattern is confirmed.
Using strict risk management rules, we can hide our stop loss above the high of the second candle. Usually, the engulfing pattern can boost attractive risk-reward ratios so you can capture profits at least 3 times your risk.
Now, before we reveal the better way to trade the engulfing pattern trading strategy, it’s important to understand what’s going on behind the scene.
What do we mean by this?
Simply put, we want to know the psychology behind the engulfing pattern.
Why the Engulfing Pattern Works?
How we interpret the psychology behind the engulfing pattern plays a big role in whether or not the pattern will work out.
Price Action Strategy is the ultimate indicator telling you what’s going on in the market. In terms of the market sentiment, it’s the only reliable source because the best technical indicators are all based on price action.
When we look at raw price action we can tell who is winning the bulls and bears battle.
The engulfing candle simply signals a big shift in the market sentiment.
So, let’s see what the bullish engulfing pattern is telling us from the supply and demand perspective.
The apparent shift in the supply-demand balance is revealed by the second candle, which shows that the buyers have stepped in and managed to overcome the sellers.
However, as we know it, the price can move higher even from a lack of sellers (supply-side is dry out). That’s the reason why you’ll see that, many times, the candlestick patterns failing more often than not.
The key idea here is that you need to be very selective and only trade the engulfing pattern when it develops at extreme ends of a trend. Truth to be told, the engulfing pattern rarely develops at the end of a trend. Most of the time, you’ll notice this chart pattern popping a lot of the time in the middle of the trend or in a sideways market where a lot of price manipulation happens.
But, what if we can use the engulfing bar trading strategy to take advantage of the price manipulation?
USDJPY-Weekly Market Analysis-Jan21,Wk1Well, I've told you there's no need to panic for crab pattern, it usually has a retest of previous low before it took off. The structure of this trading setup is also known as a sideway consolidation, although the highs(resistance) and lows(support) are not too far apart(which will affect our income potential), it is still good for meal money.
Well, in the short to medium term, the money is in the buying(long). If you are patient can wait for a retest back to previous low where my blue arrow sits to buy it, and if you are aggressive and like to get involved, you may consider shorting as long as the candle didn't break and close above the yellow channel when the market opens.
EURUSD Sideway consolidationTrade Review on EURUSD Sideway Consolidation. A real trader shows you his analysis and what he sees on the market movement before it happens. Insta-Trader shows you how much he earns but never have shown losses, even the earning is true, it doesn't help you to benefit from it.
This trade idea was shared to you on Xmas, if you have been following us, there's no way you can miss this.
For Aggressive trader, you would have caught the 1st Target once the market has broken and close above the trendline, that would give you a minimum of 39pips(blue arrow) of profit, which translate to 390USD/lot traded. If you are a conservative trader, a retest of trendline would have prompt you to engage the trade and that should give you 49pips(green arrow) of profit, which translate to 490USD/lot traded.
Every second that you choose to wait and procrastinate, are opportunity lost that you would never get back
EURUSD-Weekly Market Analysis-Dec20,Wk5On the 4-hourly and daily chart, EURUSD displays a bullish trend, but on the 1-hourly chart, it has a sideways consolidation.
Having my trading bias towards the upside, I would prefer that the market break and close above, and I can resume my bullish trade, but the truth about trading is that the market doesn't care what's your preference and it moves the way it wants.
So, I'm going to observe on candle close and plan my trade on this.
In both scenario, once the market break and close beyond the trendline, that's my target profit level which allows me to place my stop at entry attaining a risk-free trade.
GBPUSD - Minor ResistanceIf the current candle closes the way it is, there is a potential shorting opportunity for traders who are bearish on UK Pound. Let's see how the candle form up at 1800hr(+8GMT)
USDJPY-Weekly Market Analysis-Dec20,Wk1In the market, one thing for sure when there is a consolidation there will be an expansion. Right now we have a sideway consolidation on USDJPY, I'm waiting for the breakout of the trendline to assume the trade in its direction.
What's amazing that the technical chart shows an alignment of what's happening in the US election. It seems like we will have a conclusion on the US election in the coming week.
FSLY to Long, at bottom of sidewaysIn Uptrend,
at bottom of sideways;
Entry 76
Stop 69
Target1 97; reward:risk=3:1
Target2 130; reward:risk=7:1
Earning date 10/28/2020 4 PM
I am not a PRO trader. I need few months to practice trading strategies.
If you like this idea, please use SIM/Demo account to try it, until my trading plans get high winning rate.
GBPUSD - Sideway ConsolidationSideway consolidation spotted on GBPUSD. One thing for sure, an expansion will follow. What's interesting is that the market pause at the mid-point of the sideway consolidation. Any decision of trade intervention happens when the market touches the bottom trendline.
Short Trade already in a Risk-Free Trade
FCPO TRADING : 172) sideway or slowly upthis is haidojo and the number is 172...
after some bearish-engulfing pattern in candlesticks yesterday dan a fall close to 70pts. Today, fcpo-dec resumes its fall to close to 2900...
however, it is still indecisive whether the market has reversed its trend or juz a mere correction after hitting a major resistance region of 3100-3130...the support of 2800 must be watched closely...it is the main-marker to decide whether the market is bullish or bearish...
higher resistance : 3100-3130
immediate resistance : 3030
support : 2900
WARNING!
RISK DISCLAIMER : this is juz a trading idea...trading stocks, futures or forex might incur a huge risk to your account/funds… DON’T LOSE MONEY THAT YOU CANNOT AFFORD …any idea(s) of trading in this episode SHALL NOT be regarded as a hint of BUYING or SELLING . It is MERELY a trading journal and it has been used for educational purpose only… trade at your own risk!
**your "LIKE" and "FOLLOW" are my main source of motivation to continue posting more valuable contents...TQ**
FCPO TRADING : 123) sideway market persists this is 123 frm haidojo trading...FCPO-OCT is showing a sign of sideway market...with new support level formed at 2720...
we need to wait for breakout abv 2810 or the immediate support at 2720 to have a confirmation...
resistance : 2790-2806
current support : 2720
support : 2670 -2630
lower support : 2560 (now the critical indicator for bull/bear)
WARNING!
RISK DISCLAIMER : this is juz a trading idea...trading stocks, futures or forex might incur a huge risk to your account/funds… DON’T LOSE MONEY THAT YOU CANNOT AFFORD …any idea(s) of trading in this episode SHALL NOT be regarded as a hint of BUYING or SELLING . It is MERELY a trading journal and it has been used for educational purpose only… trade at your own risk!
**your "LIKE" and "FOLLOW" are my main source of motivation to continue posting more valuable contents...TQ**
CADJPY breaking the range 🦐The market after being in a sideway movement for a long time is now breaking to the upside the daily resistance.
On the daily chart we can see the false break out attempt to the downside before the market start the move up.
At the retest of the structure we can set a nice long order according with our strategy.
–––––
Follow the Shrimp 🦐
Here is the Plancton0618 technical analysis, please comment below if you have any question.
The ENTRY in the market will be taken only if the condition of Plancton0618 strategy will trigger.
Three Drives Pattern in a UK FLAG Rectangle the detail is shown on the above Idea.
this Idea is in Continuation of my Confirmed Previous Idea.
Closer to the frontlineThe key zone is around 10 - 11.000. This is what I called as a bull trap in the related idea and the situation is absolutely the same.
So I expect one more upside movement to the trap zone, what's more, I would like to see even a failed breakout, and then after a huge reversal. Before this, the falling channel should break upward and then open the space for rising.
Trade below 9100 will pause the bulls and erode the price to 8300 where the next support zone is lying.
sideway tradingsideway since 3rd June 2020...market more bias to trending to the downside, but as long as the competition of bull and bear has not shown any edge over the other, sideway market will continue...
resistance level : 2380 -2420
support level : 2300 -2320
if you trade trend, this is the time you "die"...either by the untrending pattern or because of boredom...
Bitcoin will be punishedThe reversal from mentioned bull trap resistance zone(in the related idea) looks a little bit weak. Not that clear what I like a lot but after that, the sideways correction seems clear, so downside pressure should come soon. Minimal target around 8000 with the same level of the wave A but if there will be strong momentum, then the target may be further away up to 7500 - 7000.
On the other hand if the price go higher, then the bull trap zone should work again.
