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Spinning Top

AUD CAD Trade continuationPrice has made a strong Bullish rally and broken through Triangle Wedge pattern and has now stalled at the 78.6 retracement from the last major swing. I expect bearish retracement from the price. I expect a fall to either 61.8 or 50 retracement line from the last main swing. Each of these lines represent an area of high support / resistance from structure. From there, I expect price will return to a Bullish state. From the 4 Hour chart, price is: Heavily overbought from RSI and Stochastics. Apparent bearish spinning top forming. From the 1 Hour chart, price is Showing a spinning top Stochastics is overbought. RSI is divergent. I have included where I would like to enter a trade which is just below the spinning top / indecision candle sitting at the 78.6 Line. This would give a risk reward of; 1:3.5 to the 61.8 1:5.9 to the 50.0
Short
by UnknownUnicorn3974120
EURCHF Bullish!Analysis -EURCHF looking bullish after showing signs of reversal. Sellers pushed price down into support but buyers brought it back up above support before the daily candle close. -The price action resulted in a spinning top setup AT SUPPORT which is a bullish sign. -On the 1H time frame, price just broke a bearish trendline to the upside. -There is also bullish RSI divergence on the 1H time frame which further eludes to price possibly moving higher in the coming days. -The reward/risk seems good for the setup (given the distance between daily S/R levels) Entry, Stops and Targets -Long Entry: 1.1326 (Enter long after price pulls back) -Stop Loss: 1.1307 (Set stop below the daily reversal candle) -Take Profit: 1.1364 (Set targets at a minimum of 2 times your stop depending on entry) = 2R *Trade Safe and at your own discretion!*
Long
by Mankz
NZDCAD looking to retrace after H&S breakout targets metNote -NZDCAD showing signs of slowing down after intraday rejection of higher price (long daily wick) by forming a reversal candle (Pinbar/Spinning top/Indecision) AT RESISTANCE -NZDCAD has reached an appropriate target level after breaking out of the head and shoulders (4% range of pattern and 4% target for breakout) -Breakout traders will likely take profit and short sellers will enter as well -Stochastic severely overbought at resistance Entry -Keep enough distance below the low of the reversal daily candle to confirm a transition of power from bulls to bears Stop -Above the high of the reversal daily candle Target -2 times stop Risk Management -Risk 1% to 2% of capital -Ratio: 2:1
Short
by Mankz
USD/CAD Long Setup If structure holds this pair should bounce back from its bullish trend line since the start of last month, and with added confluence of the 61.8 fibonacci level, we should have seen the end of this downwards correction. The bearish momentum of USD/CAD has been overturned since coming out the daily parallel channel and subsequently this pair has been forming higher highs and higher lows. This setup has a 70 pip stop due to NFP today and therefore should be sufficient to ride the "noise" however a clear break of this trend line will invalidate this structure, suggesting USD/CAD has entered a bear market. The setup has a potential of gaining 165 pips with a risk/reward of just over 2.3, which gives it good value to enter.
Long
by Shivam_93
CADJPY SHORTAnalysis -CADJPY daily candle closed as a spinning top or indecision candle at a solid resistance level. -Price overall is near the top of a symmetrical triangle (daily pattern = strong) -Stoch/CCI/RSI all near overbought area Trigger Set pending sell stop on the break of the spinning top candle's lows. Trade Set stops above the highs of the spinning top and targets around 84.60. A solid 1:2 risk to reward ratio could be achieved as targets fall within the range. High probability setup with good risk:reward.
Short
by Mankz
ETHUSD: Bottoming Formation Materialzing Around 423 Level.ETHUSD update: Similar to the bottoming pattern in BTC, this market is now in a high probability area to retrace. What makes this market even more interesting is the fact that the current low is still no where near the 374 low. A rally here is not only a broader sign of strength, but offers greater potential compared to a counter trend retrace. Earlier today on S.C., I published a BTC article about bottoming patterns. They are usually made up of a series of structures, but what makes them most significant is where they are developing. The pattern is actually clearer in this market than it is in BTC. The 418 low is not that much lower than the 450 low, a pin bar is present off the 423 reversal zone boundary and now a spinning top is materializing off the same level. Together, these structures could be the beginning of an inverted head and shoulders formation which is bullish. If this pattern continues to unfold around the current price level, it would also be establishing a very broad higher low formation. I wrote about this in a previous report that looked at the Elliott Wave count. The potential target for a broader higher low formation is the 581 resistance (.382 of recent bearish structure). This will not happen over night, but certainly within reason over the next month. In summary, like I have been writing on S.C., we always consider the broad probability of the location when evaluating levels and trends. We do not rely on oscillators or moving averages for these situations because they are not the most effective tools for anticipating broad reversals. For that reason we manage inventory as well as short term swing trades when the risk makes sense. At the present, the reward/risk is favoring both position and swing trade strategies long. It is all a matter of having a process to quantify that risk and decide if it is within the scope of your tolerance. If the current spinning top closes and the next candle takes out the high, that is a technical trigger to go long. We are long BTC so we will not be officially calling this trade idea in order to keep risk within the scope of our overall plan.
BITFINEX:ETHUSD
by MarcPMarkets
14
ETHUSD: Bullish Pin Bar Can Lead To Test Of Low 500's.ETHUSD update: As BTC aggressively took out it's buy trigger earlier today, this market has not. 475.50 is the pin bar high that will signal bullish momentum is in effect. The lack of follow through is not that surprising given the general sentiment, but the probability of the location is still key. Earlier today on S.C., we sent out a swing trade long idea to our followers for BTC. The reason why we are not calling this market, even if it triggers is because it would be the same as buying more BTC. As bullish as we are, we still respect the environmental limitations imposed by the short term structures that are still bearish. In this market, these structures are the bearish trend line and the 581 level (.382 of current bearish structure). As I have been writing about in the other coins, until these areas are taken out, bullish expectations are more appropriate on the conservative side. Being conservative comes in many forms. Tighter profit targets, smaller positions or waiting it out until the general environment changes are some ways to be conservative. Keep in mind we are also managing a portfolio of inventory across multiple coins. We have been increasing our long term coin count which is also a consideration when we account for our overall risk. For those who are interested in this market, if the 475.50 level is taken out, that is a long signal in terms of our methodology. Since I am not calling an official trade idea, I am not going into the reward/risk details. I will say that IF price clears the 500 level, a conservative target in the low 520s is within reason. In summary, earlier on S.C., I mentioned the short sighted nature of the herd through trend following indicators. Like I wrote, they have their place, but understand their limitations. They will not account for the probability of the general location where these markets continue to fluctuate. Just like they did not warn of the 1424 peak. Common sense, best practices and levels at least offered a clue. These lows are the same situation in reverse. There is more to timing markets than consuming news, following "experts" and reacting to lines on a chart.
BITFINEX:ETHUSD
by MarcPMarkets
11