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Spike

The spike high on EUR/TRY is a classic reversal patternThere are a couple of technical analysis patterns that can help identify reversals – some are more important than others, but this morning we note this beauty: - The spike high on daily EUR/TRY chart The spike high on EUR/TRY, not only did it chart a spike high, but it reversed from a Fibonacci extension (1.618) AND we note the divergence of the daily RSI. All these factors imply that the market has topped. Spike highs are identified by the following criteria: • a High sharply above the days on either side, • a Close near the day's Low, and • a strong preceding rally. The more extreme each of these conditions are, the greater the likelihood of a reversal. NB RSI = Relative strength Index (click here if you would like to know more - www.investopedia.com). Fibonacci extensions: Click here if you would like to know more: - www.investopedia.com Disclaimer: The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
by The_STA
1
Gold spikes after CPI, RSI divergence !!Hello everyone, as we all know the market action discounts everything :) _________________________________Make sure to Like and Follow if you like the idea_________________________________ During the Asian session on Thursday, gold experienced some selling, losing a portion of the previous day's big climb to the highest level in roughly a month. The XAU/USD, which is considered a hedge against inflation, benefited after the US CPI report revealed that inflationary pressures had been steadily rising. In light of last Friday's poor NFP print, the data heightened concerns about the return of stagflation. This, together with widespread US currency weakening, provided a significant boost to the dollar-denominated commodity. A positive RSI divergence has been found as well and it happened after the CPI report yesterday which indicates an increase in value. Possible Scenarios for the market : Scenario 1 : Today started Bearishly but looking at the chart and how the trend is currently trading we might see another push today that will be headed near the first resistance level located at 1805.86 and from there it will push further hitting the major resistance zone starting at 1819.94 where the main battle will happen and the winner will determine the market movement for the next period of time. Scenario 2 : The Bears are starting strong today and they will be attempting to drop the market value today after the big rise that happened yesterday, If there were able to keep this momentum today then we will see the market drop, and the first stop will be the support located at 1767.87, in case they broke out that support then they will keep going until they hit the support at 1743.96 where we might witness a bounce back in price. Technical indicators show : 1) The market is above the 5 10 20 50 MA and EMA indicating a Bullish short-term trend, But still below the 100 and 200 MA and EMA which tells us that the major trend is still looking Bearish. 2) The RSI is at 58.05 showing good strength in the market. a divergence has been seen between the market and the indicator. 3) The ADX is at 19.80 near trending state, With a positive crossover between DI+ (24.46) and DI- (15.79). Daily Support & Resistance points : support Resistance 1) 1767.87 1) 1805.86 2) 1743.96 2) 1819.94 3) 1729.88 3) 1843.85 Fundamental point of view : Wednesday’s rally came after the Labor Department reported that consumer prices in the United States rose by 5.4% in the year to September as rallying commodity markets from oil to coffee kept the pressure up on the world’s largest economy. On Tuesday, the International Monetary Fund cut its outlook for 2021 world growth to 5.9% from a previous forecast of 6%, saying the momentum for the global economy has weakened while uncertainty has increased. The IMF is also concerned that surging commodity prices will force central banks into tightening cycles that could trigger selloffs in global equities. While gold appeared to have a tentative resistance at $1,800, that might not prove to be too difficult to breach if risk aversion runs wild. According to investing This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice. If you have any questions please ask and have a great day !! Thank you for reading.
FXOPEN:XAUUSD
by GabiDahduh
2
SHIB Smart PlaysHere’s my insights on how I’m playing $SHIB, meme coins can be even more profitable with proper analysis and not just wishful hodling. SHIB/USDT has been keeping consolidation patterns and is currently in consolidation right now. Volumes still in the billions and social media presence is still buzzing. Analysis report is remaining in BUY. SHIB has been steadily spiking and dropping about 20%-30% and then repeating the process for the past couple of days. All stats are still pointing at another spike, and then opportunities to short. I’m currently holding 1 futures contract on SHIB (long) and holding a bag of about 10M (to pull after potential next spike). Then the next drop I can open short futures contracts and keep repeating this process until the pattern breaks. Following this allows profits to be obtained in both directions
by therealjaso
1
Spike Trade ExampleThis morning on the jobs report the S&P 500 futures spike in the premarket to a new All Time High but quickly shot back down. This triggers my indicator and an alert withing Tradingview to come check the price action and yields a potential trading opportunity. The risk is defined by the + at the top of the spike. Fundamentally, if the market makes a new ATH the trade is wrong and should be exited. If this volatility spike reveals a top then the trade should hold and the lower + represents a 3-to-1 reward-to-risk target from the entry on a pullback to the red median line. These + indicators are tools for defining the risk and reward of the trading opportunity. Technical Analysis would give potential Retracement Levels. The first Retracement Level at 4505 happens to yield the desired 3-to-1 target as indicated. The longer term Retracement Level at 4450 could be a more ambitious target for more reward or to allow a partial position to continue after reaching the first target.
CME_MINI:ES1!Short
by norok
Why you still need to take profits in BitcoinFollowing long happy trends where everyone enjoys easy gains often follows hard consolidations where lacking discipline will cause traders to burn capital. That does not mean traders have to fully ignore the market during consolidations. The wise way to approach them is to be dispassionate and take opportunities with structured risk and target levels. This is a followup to my Friday Livestream where I acknowledged my bearish sentiment in BITFINEX:BTCUSD had me miss a key Resistance turned Support which also setup a volatility spike trade on the 30m timeframe right at said level. Price held the Major Retracement level to achieve a 3-to-1 reward/risk trade. At which point a wise trader could have cut their position and left on a remaining long position to allow for a bullish continuation. Price came back to entry following the profit level which would have put the trade in peril... but since profit was taken even a loss of the remainder would still yield an overall net positive trade. The trader would not have needed to move their stop from the initial level to maintain the position for today's pump. Be mindful that the recent highs are still not broken and Bitcoin continues to trade within this range. Trade wisely!
BITFINEX:BTCUSD
by norok
Ethereum setting up breakout shortThe 60 minute chart of BITFINEX:ETHUSD created a support here around 3150 in the middle of a rising consolidation. Breaking the spike low would break the support, break the lower bounds of the flag pattern, and confirm an Ichimoku cloud breakout. These are three ways using different indications to identify a potential breakout. I dislike when charts get too cluttered but at the cost of having a very busy chart I wanted to demonstrate the methods in a single idea. Choose a method or indicator that makes sense to you as a trader and then study it to mastery.
BITFINEX:ETHUSDShort
by norok
1
PGNY at 50%NASDAQ:PGNY is a stock that I have been in for over a year. It is a rare case where I have a fundamental bias (rather than technical to start) as a friend clued me into it June 2020. The fundamental case for this company is that they offer fertility services and their "moat" is that already have many deals with Fortune 500 companies that offer fertility packages in compensation to workers to delay parenthood in favor of careers. With the research showing that the trend is continuing that women are delaying family in favor of career I believe this company is a strong hold for the coming decade. It is now providing a technical setup with a short term risk defined entry. I have been waiting for such an opportunity after watching the last year's run.
NASDAQ:PGNYLong
by norok
Hedging with short JPMWhen the market reached a (new) All Time High earlier today I wanted to get some short Delta in my positions. I learned my lesson during the 'recent unpleasantness' bottom of 7/19 that being all net long puts one at risk of volatility in a portfolio... even if the positions themselves individually remain strong and profitable. This morning's volatility setup a good short entry on NYSE:JPM that by looking at futures this evening should hedge against tomorrow's potential downside.
NYSE:JPMShort
by norok
1
Hedging with short DVNWhen the market reached a (new) All Time High earlier today I wanted to get some short Delta in my positions. I learned my lesson during the 'recent unpleasantness' bottom of 7/19 that being all net long puts one at risk of volatility in a portfolio... even if the positions themselves individually remain strong and profitable. This morning's volatility setup a good short entry on NYSE:DVN that by looking at futures this evening should hedge against tomorrow's potential downside. Earnings are close so I may need to de-risk next week before.
NYSE:DVNShort
by norok
1
UBER Price Action AnalysisI was looking at a trade today for a member of my social media. NYSE:UBER looks to have stalled at 52.35 which is right at the 50% Retracement of the recent down move. This if following a retracement of the last bull trend which was around the same zone as the IPO first weeks' price action highs. Price could in the short term retrace down to retest the 5/10/21 low but would remain bullish as long as that low holds. Breaking the 6/28/21 high would be a sign of a bullish breakout.
NYSE:UBERShort
by norok