Signs of trend strength and weaknessThe signs that I taught you in this lesson can be very useful
If they are recognized in the right place
One of the best situations to use these signs is near support or resistance
Weaktrending
NZDUSD Strong Reactions To Support & Resistance LevelsLevel A: 0.71087 - 0.71499
Level B: 0.72118
These were determined by 4 or more "touch and retrace" points on the 4 hour chart. Three Major reactions were observed with price action around these areas, and are labelled on the chart.
Scenario 1: When a trend drives the price toward Level A the trend weakens, and we see more signs of uncertainty as to where the price is moving more often a "doji". Trend analysis indicators such as the Average Directional Index respond to this late. A drop down to lower timeframes shows more candlestick and chart patterns such as hammers, and double tops/bottoms.
Scenario 2: Downtrend moving sideways before trend continuation/reverse: When the bounce provided by the levels is not strong enough to reverse a trend, and the markets begin to move sideways, signs of uncertainty again show, with longer wicks as the bulls and bears battle for control, again in lower timeframes. More potential trades lie in these areas.
Scenario 3: When the price moves sideways in Level A: Whilst within the level, there are a lot of candlestick patterns with both bullish and bearish indications, but most provide no actual insight to the markets' direction. After the price breaks out of the level and moves sideways on it however, Potential trades are revealed yet again.
As of the time of writing, the price is approaching Level B, and there is some room for trades to test this out.
Comments, constructive criticism and more reactions are always welcome, so let me know what you think about these potential trades!
USDCHF - Last Swing LowHi Traders!
The market is moving between the trendline - which is the resistance - and the support.
We here have a weak downtrend, because we have lower highs and same lows.
We expect the market to make another swing low.
An alternative is that the market could break out upwards and make a new trend.
Thanks and good luck :)!
Weak trend, still bearish.SPY testing at 280, unsure if it can break or not. Just like everyone is speculating, if the deal with China gets done then we'll most likely break 280. If it doesnt get resolved, one of two things: keep testing at 280 for a long period of time or starting downtrend to 260 level; if not a massive correction. Death cross coming up in 1 hr chart if downtrend does continues from 280. That's one another signal to keep in mind.
EURJPY weak trending marketif we look at the market movement, the price are downwards in a downtrend channel.look for buy opportunity for this eurjpy
