XAU/USD Symmetrical Triangle Pattern Breakdown – Trading Setup📌 Chart Overview
The chart represents the Gold Spot (XAU/USD) on a 1-hour timeframe, where the price is currently consolidating within a symmetrical triangle pattern. This pattern consists of a series of lower highs and higher lows, indicating market indecision. However, as price approaches the apex of the triangle, a breakout is imminent, making this a high-probability trading opportunity.
The analysis suggests a potential bearish breakdown, with price action likely to drop toward key support levels if the lower boundary of the triangle is breached.
📊 Breakdown of Key Chart Elements
1. Symmetrical Triangle Formation
The symmetrical triangle is a well-known technical pattern that signals a period of consolidation before a significant move. It forms when:
Buyers and sellers struggle for control, resulting in a narrowing price range.
A breakout occurs when one side gains dominance, leading to an expansion in volatility.
In this chart, the price is trapped within the triangle, gradually forming a squeeze, and a breakout is highly likely.
2. Resistance & Support Levels
Understanding key support and resistance zones is crucial in determining the next price direction.
🟧 Resistance Zone (~3,030 – 3,058 USD)
Marked in yellow, this area has acted as a strong resistance.
Multiple rejection points suggest that bulls are struggling to push prices higher.
If price breaks above this zone, it could trigger a bullish rally.
🟦 Support Level (~2,990 USD)
This is a critical support zone that has been tested multiple times.
The lower boundary of the triangle aligns with this level.
A clean breakdown will likely trigger stop losses and aggressive selling pressure.
📉 Expected Breakdown & Price Projection
The price is currently trading near the lower boundary of the symmetrical triangle. Based on technical probabilities, the higher likelihood is a breakdown, which is why the trade setup leans towards a short-selling opportunity.
3. Retesting Area (~3,015 – 3,020 USD)
If price breaks below the triangle, it may retest the broken support before continuing downward.
The retesting area is a critical zone where sellers may re-enter to drive prices lower.
A failed retest (bounce back inside the triangle) would invalidate the bearish setup.
📈 Trading Strategy & Execution Plan
This setup presents a well-structured short-selling opportunity based on the expected breakdown scenario.
🔽 Short Entry Strategy
Entry Confirmation: Short position can be taken once price breaks and closes below 2,990 USD (triangle support).
Retest Entry: If price retests the breakdown zone (around 3,015 – 3,020 USD) and rejects, it confirms the bearish bias.
Aggressive Entry: Traders who take early positions can enter a short once price approaches the lower triangle boundary with a tight stop-loss.
🎯 Target Levels
Upon confirmation of a breakdown, price action is likely to follow a measured move toward the following downside targets:
Target 1: 2,942 USD (first major support level)
Target 2: 2,920 USD (next key demand zone)
These levels are determined by previous price reactions and historical support zones.
🛑 Stop-Loss Placement
To manage risk, a stop-loss should be placed above the recent swing high to protect against a fake breakout.
Safe Stop Loss: Above 3,058 USD (strong resistance zone).
Aggressive Stop Loss: Just above the breakout retest zone (~3,030 USD).
📌 Market Psychology & Risk Management
Traders should consider the psychological aspects behind this setup:
Bullish traders may attempt to defend the support zone, but a failure will lead to panic selling.
Smart money (institutional traders) often use fake breakouts to trap early sellers before driving the price lower.
Wait for confirmation before entering trades to avoid being caught in false moves.
Risk-Reward Ratio (RRR)
Entry: ~2,990 USD
Target 1: 2,942 USD
Target 2: 2,920 USD
Stop Loss: 3,058 USD
This setup offers an excellent risk-to-reward ratio (RRR), making it a high-probability trade.
🔎 Conclusion & Final Thoughts
The symmetrical triangle is at its final stage, and a breakout is imminent.
A break below 2,990 USD will likely confirm a bearish move.
Retesting the breakdown zone (3,015 – 3,020 USD) is crucial for short entries.
Downside targets are 2,942 USD and 2,920 USD based on historical support zones.
Proper risk management is essential—always use stop-losses to mitigate potential losses.
This setup presents a strong opportunity for short traders, but patience is key. Traders should wait for confirmation before committing to a position.
Technical Analysis
BTC Daily: Price climbed with a warning signPrice climbed with heavy volume, heavy selling towards EOD closing just on/over prev High which is a warning sign for further incline, though could be healthy selling before further climbing
Notice to major triangle forming between short term uptrend support and the above previous trading range bottom which is now a resistance
Current action: No action
[INTRADAY] #BANKNIFTY PE & CE Levels(25/03/2025)Gap up opening expected in today's session. Expected opening above 52000 level. After opening if banknifty sustain above 52050 then expected strong upside rally upto 52450+ level in opening session. Downside 51550 level will act as a strong support for today's session. Any major downside only expected below 51450 level.
#NIFTY Intraday Support and Resistance Levels - 25/03/2025Today will be gap up opening in nifty. Expected opening near 23750 level. After opening if nifty starts trading above 23800 then this bullish rally can extend for further 150-200+ points upto 24000+ level in today's session. Any major downside only expected below 23500 level.
Nightly $SPY / $SPX Scenarios for March 25, 2025🔮 🔮
🌍 Market-Moving News 🌍:
🇺🇸🛍️ Amazon Spring Sale Impact 🛍️: Amazon’s Big Spring Sale is underway, and increased consumer activity could lift retail sector sentiment this week. Watch for broader impacts on e-commerce competitors and discretionary stocks.
🇬🇧📉 UK Growth Outlook Cut 📉: Ahead of the UK's Spring Statement, the Office for Budget Responsibility is expected to revise growth forecasts downward. While not U.S.-centric, weaker UK economic momentum may influence broader global risk sentiment.
📊 Key Data Releases 📊:
📅 Tuesday, March 25:
🏠 S&P Case-Shiller Home Price Index (9:00 AM ET):
Forecast: +4.4% YoY
Previous: +4.5% YoY
A gauge of housing market strength based on home price changes in 20 U.S. metro areas.
🛒 Consumer Confidence Index (10:00 AM ET):
Forecast: 95.0
Previous: 98.3
Measures consumers’ outlook on business and labor conditions. A key sentiment driver.
🏘️ New Home Sales (10:00 AM ET):
Forecast: 679K annualized
Previous: 657K
Tracks the number of newly constructed homes sold. Sensitive to rates and affordability.
⚠️ Disclaimer: This information is for educational and informational purposes only and should not be construed as financial advice. Always consult with a professional financial advisor before making investment decisions.
📌 #trading #stockmarket #economy #news #trendtao #charting #technicalanalysis
Tue 25th Mar 2025 USD/SGD Daily Forex Chart Buy SetupGood morning fellow traders. On my Daily Forex charts using the High Probability & Divergence trading methods from my books, I have identified a new trade setup this morning. As usual, you can read my notes on the chart for my thoughts on this setup. The trade being a USD/SGD Buy. Enjoy the day all. Cheers. Jim
Tue 25th Mar 2025 XAU/USD Daily Forex Chart Sell SetupGood morning fellow traders. On my Daily Forex charts using the High Probability & Divergence trading methods from my books, I have identified a new trade setup this morning. As usual, you can read my notes on the chart for my thoughts on this setup. The trade being a XAU/USD Sell. Enjoy the day all. Cheers. Jim
#ETHUSDT is forming a potential mid-term reversal📉 LONG BYBIT:ETHUSDT.P from $2102.90
🛡 Stop loss at $2083.00
🕒 Timeframe: 1D (Mid-term idea)
✅ Overview:
➡️ BYBIT:ETHUSDT.P Falling Wedge breakout confirmed on the daily chart.
➡️ Successful retest of the $1,955–$2,041 zone.
➡️ Holding above $2,101 opens the way to higher levels.
➡️ Volume is increasing post-breakout — confirming buyer interest.
➡️ Next strong resistance block lies between $2,308–$2,522.
🎯 TP Targets:
💎 TP 1: $2112.00 — nearest resistance and key liquidity zone.
💎 TP 2: $2125.00 — a critical daily level, zone of pullback from previous drop.
💎 TP 3: $2134.00 — potential impulse target toward major POC ($3,373).
📢 If price fails to hold above $2,068 and breaks below $2,041 — the setup is invalidated.
📢 A retest of $2,101 from below may be needed before a stronger upward move.
📢 Volume support at $1,955 is critical for the bullish case.
🚀 BYBIT:ETHUSDT.P is forming a potential mid-term reversal — if price holds above $2,101, a move toward $2,200+ and beyond is expected.
Awakening of #ETH – Return of the Bulls and Wedge Breakout📊 Overview of the BYBIT:ETHUSDT.P Situation on 4H and 1D Timeframes
✅ Trend and Technical Indicators:
➡️ The chart shows a strong downtrend that began in late December 2024, when the price dropped from a peak of around 3400 USDT to 1620 USDT by March 2025.
➡️ A correction followed, with the price recovering to around 2100 USDT, where it is currently consolidating.
✅ Volume: The volume at the bottom of the chart was high during the drop, confirming the strength of the bearish trend. Now, volume is decreasing, which may indicate a weakening momentum.
✅ Patterns: A Rising Wedge pattern is forming on the chart — typically a bearish signal, especially after a strong downtrend. This may suggest a potential reversal to the downside.
➡️ A Falling Wedge pattern appeared earlier, and its breakout upward gave a short-term bullish impulse.
✅ Positive Factors:
➡️ Price bounced from a strong support level at 1620 USDT, which gives bulls hope for recovery.
➡️ Declining volume may indicate seller exhaustion.
➡️ The earlier breakout of the Falling Wedge supports the current correction.
✅ Negative Factors:
➡️ The Rising Wedge now forming is a bearish pattern, and a breakdown could lead to further decline.
➡️ The overall trend remains bearish, and price has yet to break through key resistance levels (e.g., 2400 USDT).
➡️ The crypto market, especially BYBIT:ETHUSDT.P remains volatile, and external factors (news, macroeconomic conditions) could significantly impact movement.
📉 4H Timeframe:
➡️ A Rising Wedge is forming; price is testing the upper boundary of the wedge and a key resistance level at $2,101.
➡️ There's a potential retracement zone targeting $1,839 — aligned with the lower edge of the wedge and a liquidity area.
➡️ Support exists at $2,068 and $2,041, but if the wedge breaks downward, the decline may accelerate.
➡️ Volume is increasing, confirming active participation and the importance of this zone.
📈 1D Timeframe:
➡️ BYBIT:ETHUSDT.P bounced from a demand zone and is currently testing the $2,100 area.
➡️ The next strong resistance lies between $2,308–$2,367, and the previous downtrend hasn’t been fully broken yet.
➡️ There's a glimmer of strength on the daily (a +4.5% candle with notable volume), but the move is not yet confirmed as a sustained uptrend.
➡️ A breakout from the Falling Wedge is confirmed — a bullish pattern that played out.
➡️ Price has broken above the descending channel (orange line), increasing the likelihood of a trend reversal.
➡️ The measured target from the wedge breakout is around POC $3,373, aligning with previous volume accumulation — ambitious but logical.
⚠️ Risks / Limitations:
➡️ If price fails to hold above $2,101 and drops below $2,068, a return to $1,955 or even $1,839 is possible.
➡️ Volume is present but the momentum must be confirmed in the next 1–2 days.
📍Important Note:
👉 On 4H – a bearish setup is forming.
👉 On 1D – a weak recovery attempt, still under pressure.
👉 A reaction from the $2,100 zone is critical: either a rejection downward (per the wedge), or a breakout that invalidates the bearish setup.
👉 This area is a decision zone — a key point for planning potential trades.
📢 Conclusion: A breakout, retest, and confirmation of the structure and volume are visible.
🔵 Bullish Scenario:
➡️ The Falling Wedge breakout confirms a bullish impulse. The target at 3373.83 USDT looks realistic long-term, if price breaks 2100 USDT and holds above 2400 USDT.
➡️ To confirm this scenario, we need volume growth and a breakout of major resistance levels (e.g., 2400 USDT and above).
🔴 Bearish Scenario:
➡️ The Rising Wedge identified earlier remains valid. If this pattern plays out, the price may drop to 1901.73 USDT or even lower, to 1620 USDT.
➡️ The long-term downtrend (marked by a red line) is still intact, supporting the bearish outlook.
📉 LONG BYBIT:ETHUSDT.P from $2102.90
🛡 Stop loss at $2083.00
🕒 Timeframe: 1D (Mid-term idea)
✅ Overview:
➡️ BYBIT:ETHUSDT.P Falling Wedge breakout confirmed on the daily chart.
➡️ Successful retest of the $1,955–$2,041 zone.
➡️ Holding above $2,101 opens the way to higher levels.
➡️ Volume is increasing post-breakout — confirming buyer interest.
➡️ Next strong resistance block lies between $2,308–$2,522.
🎯 TP Targets:
💎 TP 1: $2112.00 — nearest resistance and key liquidity zone.
💎 TP 2: $2125.00 — a critical daily level, zone of pullback from previous drop.
💎 TP 3: $2134.00 — potential impulse target toward major POC ($3,373).
📢 If price fails to hold above $2,068 and breaks below $2,041 — the setup is invalidated.
📢 A retest of $2,101 from below may be needed before a stronger upward move.
📢 Volume support at $1,955 is critical for the bullish case.
🚀 BYBIT:ETHUSDT.P is forming a potential mid-term reversal — if price holds above $2,101, a move toward $2,200+ and beyond is expected.
ETHUSD – Bullish Quasimodo + iH&S Breakout | Upside Targets!Ethereum (ETHUSD) has completed a textbook bullish Quasimodo pattern in confluence with an Inverse Head & Shoulders (iH&S) on the 15-minute timeframe. Price has broken out with strong bullish momentum, and the structure suggests more upside ahead.
📊 Technical Breakdown
1. Quasimodo Pattern
A well-defined Quasimodo reversal formed at the swing low, providing early signs of a bullish trend shift.
This pattern combines a higher low and reclaimed structure—offering an excellent base for trend continuation.
2. Inverse Head & Shoulders
Left Shoulder, Head, and Right Shoulder clearly structured with neckline breakout confirmed.
Breakout above neckline resulted in a 5.38% rally into minor resistance.
3. Bull Flag Formation
A short consolidation just below the recent highs resembles a bull flag, typically a continuation signal.
Breakout from the flag would trigger the next leg toward the final target.
🎯 Targets
Minimum Target: 2,121.41 — aligns with neckline projection.
Final Target: 2,229.90 — 6.27% projected move based on iH&S measured move.
📌 Trade Idea
Entry Zone: On bull flag breakout above 2,093
Stop Loss: Below 2,060 (flag low support)
TP1: 2,121
TP2: 2,229
🔎 Key Confluences
Pattern Breakouts ✅
Strong Momentum ✅
Clean Structure & Price Geometry ✅
ETH bulls have reclaimed short-term control. If momentum sustains, the upside targets are well within reach.
GBP/USD Technical Analysis – Potential Bearish MoveThis 4-hour GBP/USD chart indicates a potential bearish setup. Price has been trading within a range, with resistance around 1.30366 and support near 1.29467.
The price recently retested the support zone, showing signs of weakness.
If the support level fails to hold, a breakdown could push the price towards the 1.27035 target.
A stronger support level is observed further below, around 1.2600, which could act as a key demand zone.
Traders should monitor the price action near the support zone. A clear rejection could signal a potential buy opportunity, while a confirmed breakdown could validate a short trade targeting lower levels.
Key Levels:
🔹 Resistance: 1.30366
🔹 Support: 1.29467
🔹 Target: 1.27035
Would you like any modifications to the analysis? 🚀
BTC/USD – Bearish Rejection, Targeting SupportChart Analysis:
BTC/USD is trading within a descending channel, showing a bearish trend.
Price recently tested the resistance zone but faced rejection.
A strong sell signal is indicated, suggesting a move towards the support level around $79,877.
If price breaks below support, further downside is possible.
Trading Plan:
Sell below resistance with a target at support.
Watch for confirmation signals before entering a position.
If price breaks above resistance, a trend reversal could be possible.
TAO ANALYSIS🔮 #TAO Analysis 💰💰
🌟🚀 As we can see that #TAO is trading in a symmetrical triangle and given a perfect breakout. But there is an instant resistance. If #TAO breaks the resistance 1 then we will see a good bullish move in few days . 🚀🚀
🔖 Current Price: $271
⏳ Target Price: $305
#TAO #Cryptocurrency #DYOR
BTC ANALYSIS#BTC Analysis : Channel Following
📊As we can see that #BTC is following ascending channel on daily time frame. Currently the price is trading above its major support zone. Price is moving upwards within a long-term rising channel, recently moving towards its support from its support level. Expect a bullish move in few days.📈
🔖 Current Price: $87,700
⏳ Target Price: $91,500
⁉️ What to do?
- Keep your eyes on the chart, observe trading volume and stay accustom to market moves.🚀💸
#BTC #MajorSupport #Cryptocurrency #ChartPattern #DYOR
Crown Castle Inc. (CCI) 1WTechnical Analysis
- The weekly chart of Crown Castle Inc. (CCI) shows a potential reversal after a prolonged downtrend.
- A breakout above the descending trendline and consolidation above $110.85 (0.786 Fibonacci) could signal the start of an upward movement.
- Key Resistance Levels: $132.06 – $146.95 – $161.85 – $180.28 – $210.07.
- Key Support Zone: $83.83 - $90.
- CCI and RSI indicators confirm improving sentiment.
A sustained breakout above $110-112 could lead to mid-term growth.
Fundamental Analysis
Crown Castle is one of the largest telecommunications infrastructure operators in the US.
- Stable revenues due to long-term contracts with telecom providers.
- Dividend yield of ~6%, making it attractive for long-term investors.
- 5G expansion and IoT growth create long-term opportunities.
Risks: High debt burden, interest rate impact, and competition with American Tower.
CCI has growth potential if it breaks above the $110-112 zone. However, macroeconomic risks remain relevant.
SILVER PROJECTION Here's my projection for Xag this week.
PS: price would do what it wants to do regardless
We cleared the high of the second week of the Month 34.067 and close bearish last week. Hence my anticipation that price is going to clear the los of the second week as well which is 31.789 taking that as my draw of Liquidity 🧲.
Shuffling down to H4, everything now depends on confirmation. Price may react from 33.302 and continue to the downside or price may decide to go and test that 33.597 zon before the sell continuation.
Watch out for these zone for trade opportunity.
Kindly boost if you find this insightful 🫴
CHFJPY Possible Trend Continuation Hi Traders, here's my breakdown on FOREXCOM:CHFJPY for a potential sell trade .
So we've basically run into structure supply, LTF Flip.
Entry model : Breaker +Inducement + RTBb
Let's hope we get triggered, and most importantly, don't get stopped out lol
#Stay Reactive.
LIKE & FOLLOW
ARC ANALYSIS🔮 #ARC Analysis
💲💲 #ARC is trading in a Symmetrical Triangle Pattern. If the price of #ARC breaks and sustain the higher price then will see a pump. Also there is an strong support zone. We may see a retest towards the support zone first and then a reversal📈
⁉️ What to do?
- We have marked crucial levels in the chart . We can trade according to the chart and make some profits. 🚀
#ARC #Cryptocurrency #Support #Resistance #DYOR
EURJPY NEXT MOVE, DEEP FUNDAMENTALS ANALYSIS EUR/JPY is currently trading around 162.300, having recently completed a breakout and subsequent retest, indicating a potential bullish continuation toward the target price of 168.300. This anticipated move suggests a gain of over 300 pips, aligning with the pair's prevailing uptrend.
Fundamentally, the Eurozone's economic indicators have shown resilience, with stable growth and inflation metrics supporting the euro. In contrast, the Bank of Japan's commitment to ultra-loose monetary policies has led to a depreciation of the yen, widening the interest rate differential between the two currencies and favoring a stronger euro
Technical analysis reinforces this bullish outlook. The pair edged higher to 164.16 last week before a slight retreat, suggesting consolidation ahead of a possible upward surge. As long as the 160.02 support level holds, further rally remains in favor, with potential targets at 164.89 and 166.67. A sustained break above these levels could pave the way toward the 168.300 target
Traders should monitor key resistance levels closely, as a confirmed breakout could present a lucrative opportunity to capitalize on the anticipated 300-pip movement. Implementing robust risk management strategies, such as setting appropriate stop-loss orders, is essential to mitigate potential market volatility. Staying informed about upcoming economic data releases and central bank communications will also be crucial in navigating this trading opportunity effectively.
EUR/JPY – Double Bottom Breakout & Trendline Retest, Trade Setup📊 Chart Type: 1-Hour (H1)
💹 Asset: EUR/JPY
📈 Technical Patterns: Double Bottom, Trendline Breakout, Retest
📌 Overview of the Chart
The EUR/JPY chart showcases a bullish reversal setup, characterized by a Double Bottom pattern, a trendline breakout, and a successful retest. This combination suggests a potential continuation towards higher price levels, making it an ideal setup for traders looking for breakout entries.
The price action initially followed a downtrend, but buyers stepped in at key support zones, leading to the formation of a strong reversal pattern. Now, the price is testing a key resistance level, and if it breaks out, we could see a significant upward move.
🟢 Key Technical Analysis Breakdown
1️⃣ Double Bottom Formation – A Bullish Reversal Signal
🔹 The Double Bottom is a classic reversal pattern that forms after an extended downtrend.
🔹 In this case, price found strong support at 160.139, forming two lows (Bottom 1 & Bottom 2), indicating buyer dominance.
🔹 The confirmation of the pattern comes with a break above the neckline at around 162.000, suggesting a shift from bearish to bullish momentum.
2️⃣ Trendline Breakout & Retest
🔹 A descending trendline had been acting as dynamic resistance, pushing prices lower.
🔹 Recently, the price broke above the trendline, signaling a potential trend shift.
🔹 Now, price is retesting the trendline, which is a key factor in confirming whether the breakout is valid.
🔹 If the retest holds, it could trigger a strong bullish move towards the next resistance zone.
📍 Support & Resistance Zones
🔹 Support Level (160.139):
The lowest point in the chart, where price tested twice and formed the Double Bottom.
Buyers stepped in aggressively at this level, preventing further decline.
Stop Loss Placement: Below this support zone for long trades.
🔹 Resistance Zone (163.725 - Target Level):
The previous swing high and a major supply zone.
A breakout above this area could lead to further bullish momentum.
📈 Trading Strategy – How to Trade This Setup?
✅ Bullish Trade Setup (Breakout & Retest Confirmation)
This setup is ideal for traders looking to capitalize on breakout and retest strategies.
📌 Entry:
Wait for a strong bullish candle to confirm the retest of the trendline.
A break above the 162.500 level could be a good entry confirmation.
📌 Target:
First target: 163.725 (Resistance Zone).
If momentum continues, the next upside target could be around 164.500.
📌 Stop Loss:
Below 160.139 (previous support level) to minimize risk.
Alternatively, place it below the trendline retest zone if entering aggressively.
📌 Risk-to-Reward Ratio (RRR):
This trade offers a strong RRR, as the downside risk is limited, while the upside potential is higher.
🔴 Bearish Scenario – What if the Retest Fails?
While the bias is bullish, traders must be prepared for a fake breakout scenario. If price fails to hold above the trendline and neckline, the structure might break down.
📌 Bearish Entry:
If price rejects the retest zone and closes back below 161.500, it could indicate a false breakout.
📌 Target:
160.139 (Support Level).
📌 Stop Loss:
Above the trendline retest zone to protect against unexpected bullish moves.
🔎 Key Takeaways & Final Thoughts
✅ The Double Bottom pattern signals a potential trend reversal.
✅ The trendline breakout & retest adds further confirmation to the bullish bias.
✅ A breakout above 162.500 could accelerate buying pressure toward 163.725.
✅ Risk management is essential: A well-placed stop loss below the support level ensures minimal downside risk.
✅ If price rejects the retest zone, traders should be prepared for a possible bearish reversal.
📌 Overall Bias: Bullish ✅
📌 Trade Confirmation: Needs trendline retest hold + bullish breakout 📈
📌 Key Level to Watch: 162.500 (Breakout Confirmation Zone) 🔥
💡 Pro Tip : Always wait for confirmation before entering a trade. A strong bullish candlestick pattern (e.g., engulfing candle) on the H1 or H4 timeframe could provide extra confidence in the setup! 🚀
EUR/GBP Chart Analysis – Inverse Head & Shoulders Bullish SetupThis EUR/GBP 1-hour chart showcases a classic Inverse Head & Shoulders (H&S) pattern, signaling a potential trend reversal from bearish to bullish. This pattern is considered one of the most reliable technical formations for spotting upcoming upward momentum, particularly after a prolonged downtrend.
🔎 Market Overview
Currency Pair: EUR/GBP
Timeframe: 1-Hour (H1)
Current Price: 0.83720
Trend: Transitioning from a downtrend to a potential bullish breakout
Key Pattern: Inverse Head & Shoulders
Trading Bias: Bullish (Pending breakout confirmation)
📊 Chart Breakdown & Technical Analysis
1️⃣ Market Structure & Trend Analysis
Before the formation of the Inverse Head & Shoulders, the market was in a strong downtrend, making lower highs and lower lows. However, buyers started stepping in near the 0.8350 level, preventing further decline. This rejection at key support has set the stage for a potential trend reversal.
Left Shoulder: Price formed a minor low around 0.8370, followed by a small bounce.
Head: Price made a deeper low around 0.8351, confirming strong support and buyer interest.
Right Shoulder: Price attempted another dip but failed to break below the previous low, forming a higher low near 0.8370, signaling increasing bullish pressure.
Neckline Resistance: 0.8385 - 0.8390 zone – a crucial level that price needs to break for confirmation of an uptrend.
2️⃣ Key Support & Resistance Levels
Support Level: 0.83513 (Major demand zone)
Resistance Levels:
Neckline: 0.8385 - 0.8390 (Breakout confirmation zone)
Major Resistance: 0.84308 (Target level)
Curve Zone: A dynamic resistance trendline that has been containing price action. A breakout above this curve signals a potential shift in trend.
📈 Trading Strategy – Bullish Breakout Plan
✅ Entry Strategy:
A long trade should be considered only after a confirmed breakout above the neckline (0.8385 - 0.8390). The confirmation comes when:
A strong bullish candle closes above the neckline.
Increased trading volume supports the breakout.
A possible retest of the neckline as new support (0.8385) before continuation.
🎯 Target Price & Stop Loss:
Take Profit (TP): 0.84308 (Projected move based on pattern size).
Stop Loss (SL): Below 0.83513 (Right Shoulder low).
Risk-to-Reward Ratio (RRR): 1:2 or higher, making this a high-probability trade setup.
🛑 Risk Management & Trade Confirmation:
Volume Confirmation: A breakout should be accompanied by a volume spike, confirming strong buyer interest.
Fakeout Warning: If price briefly breaks above the neckline but then falls back below, it could be a false breakout. In this case, waiting for a retest would be a safer approach.
Trailing Stop: Once price moves toward 0.8410, a trailing stop can help secure profits in case of market reversals.
🧐 Summary – Key Takeaways
✅ Inverse Head & Shoulders Identified – A reliable bullish reversal pattern.
✅ Breakout Zone: 0.8385 - 0.8390 (Watch for confirmation).
✅ Target Price: 0.84308 (Potential profit zone).
✅ Stop Loss: Below 0.83513 (Protect against downside risk).
✅ Risk-to-Reward Ratio: Favorable (1:2 or better).
✅ Trading Plan: Buy above the neckline, aim for 0.8430, and manage risk properly.
📌 Final Thought: If the neckline is broken with strong momentum, expect a bullish move toward 0.8430+. However, traders should remain cautious of potential fakeouts and manage risk accordingly.
📢 Share your thoughts in the comments! Are you bullish on EUR/GBP? 🚀📊
#EURGBP #ForexTrading #TechnicalAnalysis #TradingSetup #InverseHeadAndShoulders
(XAU/USD) Bearish Reversal After Head & Shoulders Formation."
Overview:
The price action of Gold (XAU/USD) on the 2-hour timeframe indicates a potential bearish move. A Head & Shoulders pattern has formed, signaling a possible trend reversal. The market recently tested a resistance level and is now showing signs of weakness.
Key Levels:
🔹 Resistance: $3,044 - $3,055 (Rejection Zone)
🔹 Sell Entry: Below $3,028 (Break of Support)
🔹 Support Level: Around $2,980 (First Key Level)
🔹 Target: $2,940 - $2,931 (Final Bearish Target)
Analysis:
✅ Price has broken below the neckline of the Head & Shoulders pattern, confirming a potential sell-off.
✅ A retest of the broken support as resistance could offer a better entry for shorts.
✅ If the price holds below $3,028, further downside toward $2,940 is expected.
✅ Bullish invalidation if price breaks back above $3,044.
Trade Idea:
📉 Sell below: $3,028
🎯 Target: $2,940
🛑 Stop Loss: Above $3,044
This setup aligns with technical analysis principles, with risk-to-reward favoring sellers. Monitor price action for confirmation before entering a trade.
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EUR/USD Falling Wedge Breakout – Professional Chart AnalysisOverview of the Chart
The EUR/USD 1-hour chart presents a bullish trading setup, featuring a well-defined falling wedge pattern, a trendline breakout, and a retest phase, signaling a potential upward move. The chart is marked with key technical elements such as support and resistance zones, breakout confirmation, and risk management parameters.
This analysis will break down each component of the chart, explaining the logic behind the setup and how traders can approach this opportunity.
1. Identified Chart Patterns
Falling Wedge Formation (Bullish Reversal Signal)
The price action formed a falling wedge, characterized by lower highs and lower lows, creating a narrowing price channel.
This pattern is typically a bullish reversal structure, as it indicates weakening selling pressure before an expected breakout.
The wedge’s downward movement ended with a strong breakout to the upside, signaling buyers regaining control.
2. Key Technical Levels
Support & Resistance Zones
Support Level (Buyers’ Stronghold)
The horizontal support level is a price area where buyers have previously stepped in, preventing further declines.
This level has been tested multiple times, reinforcing its strength as a key demand zone.
Resistance Zone (Profit Target Area)
The highlighted resistance zone represents a supply area where the price has struggled to move past in previous sessions.
The target price level aligns with this resistance, making it a realistic profit target for the long position.
3. Trendline Breakout Confirmation
Before forming the wedge, the chart shows an uptrend with a breakout above a trendline.
This trendline breakout was an early signal of bullish strength, aligning with the later wedge breakout.
After the breakout, the price came back for a retest, which is a key confirmation before further upward movement.
4. Retesting Phase Before the Upward Move
After breaking out of the wedge, the price returned to the breakout level to confirm support.
Retesting is a crucial validation step—if the price holds above this level, it increases the probability of a continued bullish move.
This retesting action provides a potential entry point for traders looking to go long.
5. Trade Setup & Risk Management Strategy
Trade Entry:
A buy entry is considered after the retest is confirmed (price holding above the breakout level).
Stop Loss Placement (Risk Control):
The stop loss is placed below the previous low at 1.07790, ensuring protection against fake breakouts or unexpected reversals.
Take Profit Target (Projected Price Move):
The target price is set at 1.09698, which aligns with previous resistance levels and the measured move from the wedge breakout.
This provides a strong risk-to-reward ratio, making the setup favorable for bullish traders.
6. Risk-Reward Ratio & Trade Viability
Risk: The distance between the entry point and the stop loss is relatively small, making it a low-risk trade.
Reward: The potential upside move is significantly higher than the risk, creating a high reward-to-risk ratio trade.
This type of technical confluence increases the probability of a successful trade, making it an attractive opportunity.
7. Conclusion & Trading Strategy
📌 Key Takeaways:
✅ The falling wedge breakout signals a bullish reversal.
✅ The trendline breakout and retest add further confirmation to the trade setup.
✅ The support and resistance zones provide a clear risk management strategy.
✅ The risk-reward ratio makes this an attractive long trade setup.
💡 Trading Plan:
🔹 Enter Long after retest confirmation above the breakout level.
🔹 Stop Loss: 1.07790 (below previous low).
🔹 Take Profit: 1.09698 (previous resistance zone).
Final Thoughts
This EUR/USD setup is a textbook example of a bullish reversal following a falling wedge breakout. Traders who patiently wait for a confirmed retest can capitalize on this high-probability trade setup, aiming for a strong bullish continuation.
🔹 Tags: #EURUSD #ForexTrading #TechnicalAnalysis #Breakout #PriceAction #TradingSetup #SupportResistance