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Three Drives

GBP/USD constant downwards pressurean in-symmetrical 3 drives pattern has formed from the previous rally , and from here we can see the second major support at 1.28135 broken from yesterday's session, reaching below the 1.28 handle and confirming a trend reversal from highs of 1.32. i'm currently looking for a retracement back to the 1.28484 - 1.29183 area for a long-term short position towards 1.2636 - 1.259 area. RSI shows bearish bias below it's neutrality level, and close to being oversold and therefore needs a minor correction for it to continue it's downwards movement. Things to take note of today is the anticipated UK GDP data coming out at 4.30am EST, i do have a feeling that it might be positive data for a correction upwards to continue it's strong downtrend. but however if it breaks above 1.292 then expect to see further upside , i will be placing a 'One Cancel Other' Buy order at 1.292 instead of a stop loss in case of a higher retracement targeting back into the 1.30 levels.
Short
by ChuaYunRong
Trade 25: Long AUDCAD #FOREXI have Bought AUDCAD for a quick short term trade, within the context of the recent sideways range. The price has also completed a three drives pattern at horizontal support. While FISHER indicator is oversold. Long at: 0.9972 -- T1 : 1.0018-- T2:1.0070 ---- SL: 0.9946 ..... Risk for this trade is only 1.5% of capital. For more details and all Stats goo.gl Disclaimer: This is my trading experience, it is not an invite or recommendation to trade. Remember -Never risk more than 2% of your balance on a single trade. And If you are a beginner 1%. -A Single or few trades result is not important. Whats important is the net return at the end of the month, quarter and year. Best
Long
by Technician
23
EURAUD ShortAfter closing me previous EURAUD short, I have taken another position, but yet to post analysis (it may not be too late to enter!) This pair is showing us a 3-drive pattern, where most would look to go long after the 3rd drive completion. However, as stated in the previous AUDUSD and Silver trades, we here at Six Figure Capital look to trade the third drive. Taking this into consideration, I looked for a second touch on the trend line with a retracement level of 0.618-0.786. Within this reteacement wave we have a bearish bat . Albeit taken form the lower high of the impulse eave, however the 88.6% retracement where we look to enter also aligns perfectly with the channel! Bat Ratios B: 0.382-0.5 C: 0.382-0.886 D: 0.618.2.618 xD: 0.886 3-Drive ratios Retracements: 0.618-0.786 Extensions: 1.272-1.618
Short
by KyleMcQuade
XAG/USD - Three DrivesHello traders :) I'm back with a market insight on XAG/USD. Price seems to be forming a valid bullish three drives pattern and I plan to capitalise on its premature formation. Price completed the 2nd price drive at 15.18 and we may be starting the 3rd price drive once we confirm the 0.618 retracement level. You will need to pay close attention to price action and candlestick formations in the current area for the perfect entry point. A clear break and close above the trendline would indicate a move higher, therefor invalidating the pattern. The maximum level for an entry point would be a 0.786 retracement, ideally I would prefer a 0.618 retracement to keep a symmetrical pattern. This is a great trading opportunity with over 1:3 risk to reward. Thank you all for your continued support, don't forget to add me on social media :)
OANDA:XAGUSDShort
by LewisGlasgow
24
Silver/USD ShortHere on the 4 hour chart we have what some would see as a bullish 3-drive pattern. However, in recent times, I have had more success trading the third wave (as suggested by my friend @LewisGlasgow ). In this pattern the first retracement hit the 0.618 level, thus I will look for the second to do the same at the top of the channel. Should price hit the zone, I will look for a short candlestick formation. That said, should the minor support area highlighted above be broken, I will likely take a short position. This entry would mostly based on the urgency with which the level is broken- a dominant engulfing candle, long day candle etc. Either way, I will hold my position until price is on par with support of the first drive- then leave half of the position until price hits the bottom of the channel. When this adjustment is made, I will also bring my stop-loss level to align with my entry price to bulletproof the trade. At Six Figure Capital, we're all about risk management! Risk is currently sitting at 1:3- should I decide to enter early, I am convinced that the lower entry will not require the same stop loss. The adjustment should allow for the risk/reward level to remain relatively unchanged. See my AUDUSD short below where I took this exact same position and price turned TO THE PIP! Three Drives ratios: Retraements: 61.8%-78.6% Extensions: 127.2%-161.8%
OANDA:XAGUSDShort
by KyleMcQuade
AUDUSD On my radar as it reaches potential reversal zone #forexWatching few pairs closely next week for potential trades, one of them is the AUDUSD as the price forms a bearish three drives pattern(symmetrical waves). The potential reversal zone of the three drives is also near the main long term falling trend line. Slightly above that there is a cluster of horizontal resistance area. Finally, there is a clear bearish divergence on Fisher indicator. My process is to spot these areas of interest where i will be looking for the trade. But as a trader, i know that patterns will fail, so i prefer to always wait for a final trigger confirmation which in my view increase the chances of setup success dramatically. Keep posted and have a great weekend and new week. Technician
by Technician
28
Bitcoin - Three DrivesHello traders, due to numerous requests for the future direction of Bitcoin here is my current view for BTC/USD on the 4h chart. I'm expecting a similar move to the one we experienced 2 months ago (chart is shown below). The prediction above was used as an indication of future price direction from $890, rather than waiting to short upon completion of the pattern at $1600. I will be treating the present setup in the exact same way. The 0.886 retracement for point B aligns with a bullish bat pattern and bullish reciprocal AB=CD (chart is shown below). This provides additional validation for a reversal at 0.886 rather than the 0.786 retracement level. There is a lot of speculation that BTC will drop to $1,000 due to it losing a further 13% in the last 24 hours, however, bitcoin has proved many credible analysts wrong time and time again, it will be interesting to see how this trade develops over the next month. Connect with me below for more training inspiration :)
BITSTAMP:BTCUSDLong
by LewisGlasgow
27
NOT A LOT UPSIDE FOR GOLD'S BULLS!BEARISH 3 DRIVE PATTERN!As we correctly predict the rising triangle broke upwards and hit the projected targets as mention at the previous article attached below. The question is what Gold 1.05% is going to do now? The current price action is bullish but with bearish signs. First of all the triangle did not broke with high volume .Second sign is the RSI divergence that it is obvious. The RSI divergence can be explained bu the fact that when price had reached those levels again it had done it with bigger volume ,we reached that level of 1,296$ per ounce but with less ''momentum''. The previous time we reached that price level Gold 1.05% couldn't break this resistance and pulled back. If nothing that will increase the demand on the safe haven asset occurs until the next week such as geopolitical tensions or military conflicts e.t.c, Gold 1.05% propably will not break this resistance area again. The Stochastics are also at the overbought area. TECHNICALLY At the chart we can see the 200EMA becoming flat and slightly bullish and this a level to watch for a retrace as is pretty close with the bottom channel line and the 50% Fib retracement level from the initial downward move. Price is near the top channel line and upper Bb band. We can also notice the mid-long term descending channel and the short term ascending channel . Currently price is at the 78,6% Fib retracement level trying to change mid-term trend to bullish . The resistance area is created by previous highs and the area between the 88,6% and the 78,6% area of initial downward move. As i already published a longer term view we are in correction of ABC leg before we change the mid-long term trnd of Gold 1.05% to bullish . So be careful on the longs at these levels. We can also see the bearish 3 drive pattern that is a possible formation.We have almost equal construction time to the rallies and to the retarcements the rallies are alligned with the 1.27% Fib extensions of the rallies and retracements are at the 61,8%-78,6% Fib retracements of the rallies. Plus the last rally we are currently now the 1,27% Fib extensions coincides with the top of resistance area and the 88.6% Fib retracement of the initial downward move. You can look for a short at 1,310$ level per ounce with targets at 1,260$ per ounce and 1,240$ per ounce. POSSIBLE TRADE: FIRST TARGET AT 1,260-1,255$ PER OUNCE AT PREVIOUS RESISTANCE,BOTTOM CHANNEL LINE AND 61.8% FIB RETRACEMENT AND 61,8% FIB RETRACEMENT OF THIRD RALLY. SECOND TARGET AT 1,240$ PER OUNCE AT 200EMA,50% FIB RETRACEMENT AND PREVIOUS RESISTANCE BUY STOP AT 1,345$ ABOVE PERVIOUS HIGHS THANKS FOR SUPPORT! HAPPY TRADING GUYS!
FX_IDC:XAUUSDShort
by The_Greek_Trader