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Zig Zag Indicator

EURGPY Short Set up - High Probability, Great Risk RewardTrend is down, and price has tested this resistance area five times, and did not make a new high as indicated by our Zig Zag. Evening star is forming on daily chart, and we have a tag of the upper Bollinger Band. Checking 4h chart shows several bearish candle reversals - most recently Falling Three Crows, and likewise tag of the upper band. Stochastic has started down. You can enter now ( more aggressive) based on the Three Crows pattern on the 4h chart, or wait until the close of today's bearish candle to confirm. ( conservative ) Normally, I wait for the daily candle to complete before entering, but in this case I am already in for the following reason: Note the the five red circles on the CRSI chart. Larry Connors suggest a reversal signal anytime the signal exceeds 90 or drops below 10. As you can see, theses have confluence with both candle reversal patterns and the Stochastic. In all but one case the signal also formed at swing high as indicated by our Zig Zag pattern. So this a very strong final confirmation that we can show this pair. This is a very good set up with a risk of 80 pips and a reward of 300 pips give or take a few depending on your entry. Still about 1:3 risk reward. Also, there is positive roll swap on they pair short so holding over the week end we should be okay.
Short
by AuthenticTrader
USDJPY - Time To Sell - High Probability with GREAT Risk RewardTrend is down - Price has just pulled back but failed to exceed high of 9-2. Bearish Engulfing pattern engulfs two days of price action, and has tagged upper Bollinger Band. Stochastic has turned down and signal line has crossed as well. Finally my new "confirmation filter" the Connors 2 period RSI has exceeded the 90% threshold, which indicates extreme overbought. Finally, red long term Zig Zag didn't paint a new low. Stop Loss is the high of the completed reversal pattern which has confluence with the 9-2 high. Take profit is previous swing low as indicated by short term zig zag ( blue), alternatively you can trail the stop 1 ATR and close when either the blue or red Zig Zag paints a new low. Compare this set-up to my EURJPY idea where I am already short and have made 1 ATR already. It is almost the identical set up. (The EURGPY has a positive correlation with USDJPY). The other yen pairs are getting close too.
Short
by AuthenticTrader
EARNINGS -- ASNA ASNA announces earnings tomorrow, and it may be worth watching if you're looking to get in long on this clothing retailer at bargain basement prices. www.marketwatch.com Truth be told, I generally dislike clothing retailers; in addition to just running their company effectively, they have to deal with changing tastes in a far more nimble fashion than other companies ... . In any event, I'd like to acquire it lower, if at all. For instance, that Zig-Zag indicated resistance at between 6.30 and 6.40 looks like it would be a "good spot," and I would normally shoot for selling a short put there on the notion of either getting put the stock there or keeping the premium ... . Unfortunately, the Oct 21st 7 short put is only offering .25 at the mid; the 6 even less, which hardly makes that strategy "worth it." So, it's either (a) wait for a dip to 6.50-ish or (b) pass on it entirely ... . The other option would be to short straddle it (i.e., the Oct 21st 8/8 short straddle). Unfortunately, there is also not enough premium in that setup (1.25 cr at the mid) to make that worthwhile either ... . I generally shoot to take short straddles off at 25% max profit and 25% of $125 is about $31/contract.
A
by NaughtyPines
XAUUSD Three Hour Chart: Bearish: Mirrors GDX ActionThis is a 3 Hour Chart. it is more bearish than the daily. Here are ONE DOZEN negatives I see in-XAUUSD, and why I feel-Gold is a sell: 1. Sell Fractals in effect (red rectangle on chart). 2. Alligator jaws OPEN in tandem with sell Fractal. Alligator FEEDING IN DOWN-TREND. 3. Chop indicator (under chart) is above the 38.2 shaded area. This indicates a ZERO trend and, at best, sloppy action with a downward bias. 4. Phase energy (lower top indicator) is heading LOWER. The action is below the zero line. Decidedly bearish . 5. Momentum (middle top indicator) is the 5/34 measure, and this is bearish action and is heading lower. Histogram within is also under zero line. 6. Prices are trading BELOW the Ichimoku Cloud . 8. Prices are trading below the Ki jun-Sen baseline of the Ichimoku Cloud . This is a sell signal. 9. Prices are trading below the thick red Ichimoku Cloud conversion line. This is a sell signal. 9. The red Ichimoku Cloud conversion line direction is heading lower. This is a sell signal. 10. The Ki jun-Sen baseline of the Ichimoku Cloud direction is heading lower. This is a sell signal. 11. The CHOP ZONE indicator (under chart) is red, indicating a down trend. 12. RSI/ Stochastic (top) is heading lower after a bearish cross. My comments: very bearish signs. The sell signals are only moderately strong because CHOP is NOT BELOW the shaded area. More bearish than the daily chartdaily chart. IF THERE IS A TECHNICAL REBOUND, there must be TREND or price action will just zig-zag. Decision: do not go long-XAUUSD. The path of least resistance is likely to be lower. Good luck to you. Don.
FX_IDC:XAUUSDShort
by 649bruno
1
WYCKOFF SHORT ON AT&TThis is a combination of Wyckoff and price action. There are many names for this rally up to the upper channel line of the bearish channel, such as "Second Entry", "2 Leg Pullback", "Gartley", and of course "Redistribution". I think this shows an important aspect of trading. Even though there are many different methodologies regarding successful trading, at their core they are very similar. The "Second Entry" and "2 Leg Pullback" are terms taken from Price Action. "Gartley" is from Harmonic Trading. And "Redistribution" is of course from Wyckoff. And proponents from all of these methodologies would probably agree that a multi leg pullback within a channel is a high probability pattern for a continuation in the direction of the channel, in this case Bearish. Of course, a break of the high at "X" (AKA CREEK) would negate the bias, so that is where to put the stop. First Target is AB=CD extension with R:R of 1:1.93. Second Target is at the 1.236 Fib Ext with R:R 1:2.48. There could be support at the ICE level, so this would be a good spot to either tighten the stop or take off a portion of the position. Entry is on a 3 bar swing high, with the close of bar 3 below the lows of both bars 1 & 2. Plus the Wyckoff test, the volume on both the swing high at "B" and "D" are the same, even though the swing high at "D" is obviously higher than "B", indicating no support for higher prices. Good luck to all. FYI - I am using a Zig Zag (5,1) and OBV only for this analysis.
NYSE:TShort
by npatz_2000
3
AGGRESSIVE VSA/WYCKOFF SHORT ON ANTMIndicators used: 1) Zig Zag with 3% deviations to identify bull and bear swings (similar to the Weis Wave Indicator); 2) OBV is used to determine net volume change during the bull and bear swings (instead of cumulative volume used by the Weis Wave Indicator). Aggressive short entry on break of low of DV (Distribution Volume) bar with significant weakness in the background. Distribution volume is a term I use to identify high volume up bars with a down close. This term I use is from my study of VSA (Volume Spread Analysis), which is a methodology based on aspects of the Wyckoff method that looks at volume, spread, and close of individual bars and waves. This is an aggressive entry because it is the second entry after the 1st DV entry on 12-19-14 who's target would have been the low of wave 5 and would have an initial stop above the resistance level above. This entry will have a tighter stop above the high of the bar, and a much deeper target at the last major support level as shown at $108.92, instead of the intermediate support level at wave 5. I would enter with 1/3 to 1/2 of a full position, then add on after a strong break of the support level at wave 5 and a low volume rally back up to the support turned resistance level with a target for the full position at the $108.92 level. Background Weakness: wave 5 moved 6.73% on -4.1m shares, which is a larger % and volume move than both waves 1 & 3, showing increasing weakness; wave 6 moved 6.7% on 5m shares, which is the largest bull wave in the last 3, with waves 4 & 6 unable to break the resistance level set by wave 2, indicating significant supply at this level. Plus a DV bar at the end of wave 6, further indicating supply overcoming demand. Another reason that I term this an aggressive entry is due to the potential of the intermediate support level at wave 5 holding indicating that this trading range is in reality a re-accumulation zone rather than a distribution zone.
AShort
by npatz_2000