Diagnosticating an Uptrend is Crucial (4hr Example)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.
Ascending channel patterns or rising channels are short-term bullish in that a stock moves higher within an ascending channel, but these patterns often form within longer-term downtrends as continuation patterns. The ascending channel pattern is often followed by lower prices, but only after a downside penetration of the lower trend line. The stock will continue channeling upward until it is able to break either the upper or lower trend line. An upside break is bullish, while a downside break is bearish.
Context: Often found within a downtrend, but a close look reveals a minor uptrend.
Appearance: This is a channeling stock with an upward tilt. The stock’s price action is controlled by two parallel trend lines. Below the stock is the primary ascending trend line which connects consecutive higher lows. Above the stock is a secondary trend line, which also is ascending as it connects consecutive higher highs. Price follows the path of least resistance in an ascending channel, which is up. Upon reaching the lower trend line, the stock bounces until it reaches the upper trend line, which acts as resistance as well as a profit-taking zone. Trading an ascending channel in the most effective way is through buying dips to the lower trend line for short-term bounce plays, or by waiting for a downside breakout to occur before short selling.
Breakout Expectation: Channeling stocks within ascending channels are only able to reverse course with a downside penetration of the primary ascending trend line. The intensity of this breakout, the duration of the channel, and the width of the channel will determine how far a breakout may carry. An upside breakout from an ascending channel indicates a higher intensity of buying, and is a technical buy signal. A downside breakout from an ascending channel indicates lower prices to come, and is a technical sell signal. - baby pips
21:38:54 (UTC)
Fri Apr 24, 2020
US-DOLLAR
USDJPY KEY LEVELS TO WATCHHello Traders
I'm here with a new forex idea and analysis, Kindly share your LOVE by giving me LIKES and COMMENTS.
Share with more traders like you.
Follow me for more.
Thanks in advance.
Please support this idea with a LIKE if you find it useful.
Thank you for reading this idea! I hope it's been useful to you and some of us will turn it into profitable.
Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts.
The information given is not Financial Advice.
NZDUSD: Multi Time Frame Analysis & Trading Plan
Morning guys!
NZDUSD is coiling on a rising trendline on 4H.
on 1H we see a formation of the ascending triangle with a sequence of higher lows and minor horizontal resistance.
to wisely catch a pullback from a trendline, focus on 0.598 resistance!
being broken to the upside (1H candle close above), it will give us a perfect opportunity to buy the pair.
target levels: 0.604/0.607
in case of a bearish violation of a trendline, bias will switch to bearish!
good luck!
AUDUSD May Keep Falling
hey guys,
after audusd reached a key daily level, it looks like bulls are totally exhausted and the market returns to its bearish trend.
with a lower high formation and rsi divergence based on key resistance, I believe that chances are high that the market will drop lower.
last resort for buyers is 0.626 - 0.628 minor support,
being broken to the downside, it will trigger more shorts and the next goal for sellers will be 0.618.
then, if the sentiment remains the same, 0.6064 is the next level.
adjust your trading plan accordingly!
PANDEMIC RESULTS: USD,GOLD, SILVER AND VIX! Are the markets getting any better or worse due to this Covid pandemic???
Gold is taking off. Rising 20% in last two years. Gold has not surpassed the US dollar like it did in 2012. See graph! So it can't be that bad based on this technical analysis. Fear (VIX) is getting lower and markets like S&P, DJI, NASDAQ are rising and stabilizing.. However, the feds are pumping trillions of dollars into market to prevent a financial holocaust.
LOTS OF INFLATION EXPECTED. A MOST DEFINITE RECESSION SHOULD BE FELT AT SOME LEVEL IN 2021 AND FORWARD !!!!! Gold on a bull run for sure! But while silver IS NOT doing much and is under performing, will silver start to explode and follow gold like it has done in 2012????
If we can control corona cases along with the US death count in USA, we might start seeing the sun again. By Christmas we should be in a much better atmosphere, both financially, spiritually and emotionally.................
USDJPY May Keep Falling
yesterday's bearish breakout of a 108.6 is a very important clue to consider!
the market has perfectly retested the broken structure and showed a clear bearish reaction to that.
based on that we can expect further bearish continuation to lower levels of structure.
for targets aim at 107.8 / 107.2
good luck!
U.S DOLLAR INDEX (DXY) Important Moment!
Dollar index is back again within a major rising channel.
after two fake breakouts to the upside and to the downside, the greenback is approaching the channel's resistance.
usd has already proven its ability to easily break the boundaries, so this time might be the same.
pay attention to the reaction of the market:
in case of a bullish breakout, chances will be high that the current structure high - 103.0 level will be reached.
in case of a retracement, the support of the channel most likely will be reached.
good luck!