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US-DOLLAR

Ascending ChannelKEY TAKEAWAYS An ascending channel is used in technical analysis to show an uptrend in a security’s price. It is formed from two positive sloping trend lines drawn above and below a price series depicting resistance and support levels, respectively. Channels are used commonly in technical analysis to confirm trends and identify breakouts and reversals. Understanding Ascending Channels Within an ascending channel, price does not always remain entirely contained within the pattern’s parallel lines but instead shows areas of support and resistance that traders can use to set stop-loss orders and profit targets. A breakout above an ascending channel can signal a continuation of the move higher, while a breakdown below an ascending channel can indicate a possible trend change. Ascending channels show a clearly defined uptrend. Traders can swing trade between the pattern’s support and resistance levels or trade in the direction of a breakout or breakdown. Trading the Ascending Channel Support and Resistance: Traders could open a long position when a stock's price reaches the ascending channel’s lower trend line and exit the trade when price nears the upper channel line. A stop-loss order should be placed slightly below the lower trend line to prevent losses if the security’s price abruptly reverses. Traders who use this strategy should ensure there is enough distance between the pattern’s parallel lines to set an adequate risk/reward ratio. For example, if a trader places a $5 stop, the width of the ascending channel should be a minimum $10 to allow for a 1:2 risk/reward ratio. Breakouts: Traders could buy a stock when its price breaks above the upper channel line of an ascending channel. It is prudent to use other technical indicators to confirm the breakout. For example, traders could require that a significant increase in volume accompanies the breakout and that there is no overhead resistance on higher time frame charts. Breakdowns: Before traders take a short position when price breaks below the lower channel line of an ascending channel, they should look for other signs that show weakness in the pattern. Price failing to reach the upper trend line frequently is one such warning sign. Traders should also look for negative divergence between a popular indicator, such as the relative strength index (RSI), and price. For instance, if a stock’s price is making higher highs within the ascending channel, but the indicator is making lower highs, this suggests upward momentum is waning. Envelope Channels Envelope channels are another popular channel formation that can incorporate both descending and ascending channel patterns. Envelope channels are typically used to chart and analyze a security’s price movement over a longer period of time. Trend lines can be based on moving averages or highs and lows over specified intervals. Envelope channels can use similar trading strategies to both descending and ascending channels. This analysis will typically be based on a stock price movement over an extended period of time while ascending and descending channels can be beneficial for charting a security’s price immediately after a reversal.
Education
by Saeed966
USDCAD: Key Weekly Structure Ahead!!! damn, how hard to find any good trading setup during this week. the market is just crazy giving us no chance for a safe entry. watching USDCAD, selling rally clearly continues. the price will soon reach 1.30 structure support level. it is a 2019's low and a key structure of 2019's/2018's price action. I guess sellers are aiming there. then a bullish reaction will be highly probable. I will be waiting for a reversal clues on daily to catch a pullback. good luck.
Short
by VasilyTrader
13
USDCHF: Scenarios & Key Supply/Demand Points USDCHF is trading in a bearish trend. the price is steadily falling within a channel. on 4H the price is currently contracting with a descending triangle formation. it is the classic consolidation pattern and the side of its breakout will show us the midterm direction of the pair. in case of a bullish violation of the resistance line of the triangle, goal for buyers will be the resistance of the above-mentioned channel. from that point, a bearish reaction will most likely follow. in case of a bearish violation of the support line of the triangle, goal for sellers will be 0.903 level based on a current 4h structure low. I am bearish biased due to a daily bearish trend, but let's see what's gonna happen.
by VasilyTrader
10
NZDUSD: Fibonacci + Structure Based Short Trade on Thursday NZDUSD broke below a 4H structure support. the breakout is considered to be confirmed and on Friday the price retested the broken level. Friday's high momentum bearish candle indicates the prevailing bearish sentiment. on Monday the price will most likely keep falling! those who will trade the market opening will have a perfect opportunity to sell the market. in case of the absence of opening gaps, you can short the market on spot. goal - 0.6502 good luck
Short
by VasilyTrader
14
DXY, Gold, Silver and Channels. Wait it out.For those concerned about $GLD $IAU $SLV going up long term, look at this as a multi-day/week event. It will go up, but it likely needs to pull back more first. It's not news/media that's pushing this down, but rather simple mathematical Fibonacci trends and channels that are following through. $DXY (the US dollar) will continue to rise until it either hits the top of its trend line or the edge of the channel. Gold ($XAUUSD) and silver ($XAGUSD) will continue to fall until it does. Sure, there will be micro-ups... but my personal recommendation is to wait until Gold gets to the bottom of the channel, and DXY gets to the top. I'm not a professional or an analyst by any stretch of the imagination. This is just what I see right now.
OANDA:XAUUSDLong
by rmajoran
EURUSD: Consolidation & Complete Indecision EURUSD is currently stuck within a wide horizontal trading range. because the trend is still bullish, we keep being bullish biased and expect a bullish continuation. however, it is very risky to buy the market from current prices. to catch the next bullish wave I would suggest waiting for a bullish breakout of the resistance of the range on 8h. then we can initiate a long trade on retest. goal will be 1.20 sometimes consolidation is the first reversal sign, for that reason, we should also consider a bearish scenario. to catch a bearish wave, wait for a bearish breakout of the range on 8h. goal will be 1.16 good luck!
Long
by VasilyTrader
12