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CADCHF - Supply Zone SELL 4H This idea is based on my understanding of order flow. A significant drop allowed me to define a supply zone where open sell orders are left over (red zone). After the drop , the price has recovered in a compression zone (Green zone). The compression zone ensures that in this area, where the price is slowly rising, the buy orders are "eaten up" piece by piece. If the price moves up to our supply zone, we can expect a pullback as there are still open sell orders in the zone that are now triggered. I am looking for my target on the last demand zone which is exactly before the significant rally. Thats good for the idea! If the demand zone after hitting TP breaks, we can go for the second target. Important: Only if demand zone breaks! Due to our compression zone, in which almost no buy orders are now placed, we can assume that our second target can be reached quickly at the beginning of the compression zone. Infos about the Trade: Entry: 0.7526 SL: 0.75605 TP1: 0.73903 TP2: 0.72659 Risk: 34.5 Pips Reward TP1: 136 Pips Reward TP2: 260 Pips Risk/Reward ratio: 3.94 Use proper money management! I recoment to risk max 2% of your entire balance if it hits SL. Happy trading! I'll keep you up to date and give trade updates. Stay tuned!
Short
by Sturlison_98
Update Gold for follower that ask me in pmHi I have many pm so I would like to summanry in this idea. As I have early priate idea that have old entry around 1496 , 1528 If you still keep this nothing to do because I think you partial close and let it run as it can go. What 's next ! I see daily chat . from 1160 it have big move around 3 step and now in step 4 it move around 1600 - 1300 -1000 pips it is decreasing if i calculate to forcast next move . It should move around 700 pips ( 1557-1568) Yes, If I am right This move will go around 1557-1568 and will retracement again and check direction again. Now we near supply zone in weekly timeframe ( gray zone) It may drop sharply or hugh Break up. Nothing is 100% sure ,Only good money management can help you survive. Yes It is only my opinion . but what to do it is depend on your account and strategy. Hope it may a little bit help. Trade with cauton and don't forget to protect profit. Cheer, Theo.
OANDA:XAUUSDLong
by theoris
2
EUR/GBP - Short retrace back into S/R zone before new leg downEUR/GBP breached a strong support & resistance (S/R) zone in one H4 candle. We can therefore expect price to move back into the zone due to some profit-taking on a Friday, as well as the larger money increasing their position before pushing price lower. Look for price to move into the 0.9050 - 0.9100 zone before continuing its descent. This would be a favourable trade opportunity, as if price breaches this zone in any meaningful way then the market has invalidated the downward movement. All the best. DD
Short
by DreamsDefined
EURAUD shortMy reasons for this trade are: on weekly we can see price is looking to close as an inverted hammer (still waiting on close). On daily we had a strong bearish close yesterday showing momentum to the downside, it also closed back into my daily channel. We have seen some exhaustion on 4H between the 20EMA and 50EMA. Price is looking to test the 4H 20EMA at my zone, which lines up with 78.6% fib retracement from the previous wick high. On 1H we can see the blue zone has had many rejections over the last few days, the 1H 50EMA is also approaching this zone where I will be looking to short to 1.6355.
Short
by andrewlickley
Part 2. The Power of Algorithmic Support and Resistance - AppleWelcome to Part 2 of the series examining algorithmic support and resistance (S/R). Today we'll check out Apple Inc (AAPL), and how the algorithm defined S/R zones over the last 15 years. So, as I mentioned in Part 1 (see the Related Ideas link below), the algorithm incorporates a number of factors to determine, in real-time, viable support and resistance zones. I primarily trade currencies, and dabble with some indexes, so I was interested to see how the algo performed in a upward biased equity market (equity markets, unlike currency markets, have an intrinsic upward momentum over the long-term). Spoiler alert: it was almost flawless. Now, I have to admit that I've cherry picked this example; not every equity/currency/index/bond market will work this well - but it is a good example of how valid the algo is. But, like every tool in a technical analysts arsenal, nothing works every time. Okay, without further rambling, let's check out some examples. We'll start back in 2006: So far, so good! There were heaps of great tradeable signals provided by the algo. Remember, as soon as a zone is identified (the vertical background colours), you can trade any subsequent signal - there's no need to wait for confirmation of the zones validity. Let's have a look at the next chart: The really interesting thing for me is how price gets stuck between Zone 3 and Zone 4. This is a perfect example that highlights how accurately the algo manages to identify zones, and how the market respects them in a consistent manner. Onto the next chart: Here we can see how, even when a zone is initially breached, it can later provide significant support/resistance. We never know exactly when a market is going to respect a zone - we simply have to wait for market/price confirmation. The next chart: Again, some really great trading opportunities here. Breakouts and retests of S/R zones are particularly great trades. You will sometimes experience false breakouts, but that's where trade and risk management comes into play. I really love how zones can come back into play years after they're formed. Okay, the last chart: Now we're up to date! Zone 8 again provided some great opportunities, and Zone 9 has yet to be re-tested by the market. That's all I wanted to cover for today. Basically just providing further examples of how the algo forms zones, and how the market (fairly) reliably reacts to them. Knowing where the market may react and where price may turn is half the battle. As you can see, you could have made a great deal of money trading these signals (ignoring the fact you could have made a great deal just buying and holding Apple, but that's not what we're looking at today). Feel free to get in touch if you have any comments or questions! All the best, DD
NASDAQ:AAPLEducation
by DreamsDefined
2