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USDJPY | SWING - 31. AUGU. 2020Hello my friend | Welcome Back. Please support this idea with LIKE if you find it useful. *** The dollar against the Japanese yen is swinging towards resistance and is likely to break it. *** Here is the full analysis for this pair, let me know in the comment section below if you have any questions, the entry will be taken only if all rules of the strategies will be satisfied. I suggest you keep this pair on your watchlist and see if the rules of your strategy are satisfied. Remember this analysis is not 100% accurate No single analysis is To make a decision follow your own thoughts. *** The information given is not a Financial Advice.
Long
by Saeed966
8
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
USD/CHF Long Position after Confirmation of SupportHere on CHF we are seeing two major important points that can determine the direction of our next trade. First of all we see that the price is really close to a horizontal support. This can gives us a nice risk-reward for a long position. Second of all, we see the price is following a trend line (roughly, it's not perfect admittedly). We can use this trend line to understand when we need to exit our long position. Basically it means that the price is trending downwards, and we should be conservative with our positions. Don't hold it too long, and exit relatively early. That's why I drew the orange line to bounce at around 0.9073 All other information can be found on the chart. Good luck! P.S. You might have noticed I posted an exact copy of this idea for CHF/USD.... oops. Turns out I had the pairs the wrong way around, and nobody actually looks at CHF/USD =\. So I decided to repost it here :). Follow me for consistent high quality updates, with clear explanations and charts. Please like this post to support me. - Trading Guru -------------------------------------------------------------- Disclaimer! This post does not provide financial advice. It is for educational purposes only!
Long
by Trading-Guru
8
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