FTSE Elliott Wave Analysis for Monday 22/05/2023Trading day preparation. Although pullback is expected in the higher timeframe, we can see some more upside in the lower timeframe. We discuss several scenarios that could play out.
UK100 trade ideas
FTSE Elliott Wave Analysis for Sunday 21/05/2023A pullback in the higher timeframe seems likely. We have 5 waves up as an impulse in the weekly, daily, and 4h timeframe. However, as divergence in the weekly is not really outspoken, a new high is still possible. Investors should wait for the pullback to buy. Traders should analyze the lower timeframe.
FTSE Elliott Wave Analysis for Wednesday 17/05/2023Trading day preparation. Although pullback is expected in the higher timeframe, we can see some more upside in the lower timeframe. We discuss several scenarios that could play out.
UKX-Ftse ?
Previous.
Had been a rebound area.
For certainty in trading.
IDK and I don't move the market/index.
I just look at history and try to make sense of entry/by sentiment.
You are a master in trading when you master your R:R.
Try not to trust 100% in any idea.. and pause / ponder the idea if it make sense to risk it.
Thou shall not risk all in one trade.
All the best
FTSE Elliott Wave Analysis for Tuesday 16/05/2023Trading day preparation. Although pullback is expected in the higher timeframe, we can see some more upside in the lower timeframe. We discuss several scenarios that could play out. We see two ways to enter a trade.
FTSE Elliott Wave Analysis for Monday 15/05/2023Trading day preparation. Although pullback is expected in the higher timeframe, we can see some upside today in the lower timeframe. We discuss several scenarios that could play out. We see three ways to enter a trade.
FTSE Elliott Wave Analysis for Sunday 14/05/2023A pullback in the higher timeframe seems likely. We have 5 waves up as an impulse in the weekly, daily, and 4h timeframe. However, as divergence in the weekly is not really outspoken, a new high is still possible. Investors should wait for the pullback to buy. Traders should analyze the lower timeframe.
UK100:FTSE Rebounds on Double Bottom and Positive UK GDP Data
The FTSE has shown signs of a potential price increase after a Double Bottom pattern and Divergence were identified on the 4-hour timeframe. This movement is likely to continue in the direction of the current trend. The recent growth in value can be attributed to positive data from the UK, which showed a 0.1% increase in quarterly GDP in Q1. In addition, both Industrial Production and Manufacturing Production expanded by 0.7% in March.
UK100 Short Term Sell IdeaD1 - Bearish convergence followed by a pullback,
Bearish hidden divergence.
Price is bouncing lower from a strong resistance zone.
No opposite signs.
H4 - Bearish trend pattern.
Currently it looks like a pullback is happening.
Until the two strong resistance zones hold my short term view remains bearish here.
FTSE: About to give a strong longterm buy signalFTSE100 has been trading inside a Channel Up since the October 13th 2022 bottom, currently pulling back after a rejection on the internal LH trendline. This has turned the 1D timeframe neutral (RSI = 48.285, MACD = 4.950, ADX = 49.378) and with the price on the 1D MA50, those are the conditions for a buy.
The Buy signal trigger however would be the index crossing over the LH trendline, as it did on a similar pattern on November 10th 2022. We will buy either on that trigger or on the 1D MA200. In both cases TP = 8,250.
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UK100 LongHello Everyone!
I will be looking for Uk100 Long for the following reasons:
1. the trend is bullish
2. the bullish correction has finished, hence the strong bullish run.
3. will wait for a sort of bullish flag to form to complete the right shoulder of the inverse head and shoulder, before an entry.
How to Use Fibonacci RetracementsIf you’re wondering how to trade Fibonacci retracements, you’re in the right place. Today, we’ll be breaking down why traders use Fibonacci retracements and how you can apply them in your own trading, and we’ll list our top tips for making the most out of Fibonacci trading.
The Fibonacci Sequence for Trading
Fibonacci retracements make use of the Fibonacci sequence and the resulting Golden Ratio. Simply put, the Fibonacci sequence is a mathematical concept that starts at 0, then 1, with each following number being the sum of the previous two. It goes 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, and so on.
What we’re interested in is the relationship between the numbers. For example, one number in the sequence divided by the next, like 13/21, will always roughly equal 0.618 (the Golden Ratio). In the case of 13/21, it’s 0.619. As the sequence progresses, the ratio moves closer to 0.618. There are other calculations that we won’t discuss here, but they also give us complimentary ratios of 0.236, 0.382, and 0.786.
Notably, traders typically pay the most attention to the 0.382 and 0.618 ratios. 0.5 is also commonly used, despite not being a true Fibonacci ratio. When using Fibonacci patterns while trading, these ratios are typically expressed as percentages, such as 38.2%, 50%, and 61.8%.
Applying the Fibonacci Numbers to Trading
While these ratios are most often applied to Fibonacci retracements, there are actually quite a few ways to use them. Fibonacci extensions, fans, spirals, channels, and arcs are all advanced techniques commonly used by professional traders.
The Fibonacci ratios are also fundamental to harmonic pattern trading. The ABCD , Gartley , and Bat patterns, amongst others, all use Fibonacci retracements and extensions. Once you get the hang of Fibonacci retracements, learning these patterns could be an excellent next step in developing your Fibonacci skills.
What Are Fibonacci Retracements?
Fibonacci retracements (also termed “fibs”) allow traders to quickly identify key support and resistance levels using the defined ratios. Thankfully, with the advent of charting software like TickTrader , traders no longer need to calculate these key price points manually. Instead, they can apply the visual Fibonacci retracement tool in just a few clicks.
Fibonacci retracements typically work best in trending markets. For example, the tool can be applied to significant swing highs and lows to find areas of support during an uptrend. Once the price cools off, it’ll often retrace to the 38.2%, 50%, or 61.8% levels before continuing the bullish trend.
Like regular support and resistance levels, you can think of the Fibonacci levels as areas of interest rather than a place where the price will reverse with pip-perfect precision. That’s why candlestick and chart patterns are commonly used in conjunction with Fibonacci retracements. Hammers, shooting stars, triangles, and wedges can all provide you with extra confidence that these levels are likely to hold.
How Can Fibonacci Retracements Be Used?
Fibonacci retracements help traders to predict the levels the price might respect in the future. Given their predictive nature, they can help you determine optimal entry points, stop losses, and price targets when trading in the forex market . Fibonacci retracements can be used across all timeframes, from 1-second to monthly charts, thanks to the fractal, or self-repeating, nature of the Fibonacci sequence.
Using Fibonacci Retracements for Trading
Getting to grips with the Fibonacci retracement tool is easy. There are just two key rules to remember:
If you’re looking for support levels, set the first point at a significant swing low and the second at a significant swing high.
If you’re looking for resistance levels, set the first point at a significant swing high and the second at a significant swing low.
Let’s take a look at a few examples. If you’d like to try your hand at using Fibonacci retracements, you can use the TickTrader platform offered by FXOpen . You can gain access to live charts and use the built-in Fibonacci retracement tool to get started in minutes.
AUD/USD
We can see AUD/USD on the weekly chart following the 2008 financial crisis. After recovering and putting in months of bullish structure, our swing high and low points have formed. Notice that, upon touching the 38.2% area, the price attempted to close below but was rejected three times, giving us three long wicks. This rejection was an opportunity for traders to identify that further bullishness was inbound, which could’ve influenced their lower timeframe decision-making.
XBR/USD
In this example, Brent Crude Oil has shown signs of bearishness on the 15-minute chart, breaking support and making a lower low. By taking the high and low of this bearish move, we can see that the 61.8% area posed significant resistance, offering two bearish candles that indicated that the price wanted to move lower. Additionally, this area also lines up with a level of support-turned-resistance at 61.8%, giving traders extra confirmation that the area could hold.
GBP/USD
In the chart above, GBP/USD struggled to maintain any bullishness on the daily chart, continually making lower highs and lower lows. By using the most extreme swing low, we can see that a retracement to the 50% area gave traders a chance to get in shortly before a further breakdown. Interestingly, note that the 23.6% level acted as a support before the swing low had even formed. Subsequently, it also offered traders an opportunity to get in on the retest on that level before the price moved lower.
Tips for Using Fibonacci Retracements in Your Trading System
Despite their simplicity, there are a few nuances to learn that can help you when trading Fibonacci retracements.
They’re Not a Silver Bullet
As with any trading tool, using Fib retracements won’t suddenly make every trade you take a winner. It’s merely a predictive tool that can help guide your trades, and it should be used alongside other forms of technical analysis to increase your chances of success.
Wait for Closes to Determine Whether an Area is Suitable to Trade
To ascertain whether an area is holding or not, traders will typically look at the strength of the reaction from the zone. If the price closes through the level cleanly without producing long wicks, then it’s less likely that it’ll reverse. In contrast, if the price is continually rejected and seems to be struggling, then it’s more likely to reverse.
Stick to Your Chosen Timeframe
Related to the last point, use the same timeframe on which you set the Fibonacci retracement to determine whether the area is likely to reverse. If you set it on the 1-hour chart, then look at how it closes on the same timeframe. While tempting, if you switch to the 15-minute or 5-minute charts to see how the price is reacting, it’s likely to provide contradictory signals that will only complicate your analysis.
Be Aware of Higher Timeframe Trends
As with many aspects of trading, it’s always best practice to be cognisant of the higher timeframe trend and trade in harmony with it. For example, if the trend on the daily chart is bullish, looking for bearish retracements to go long on the 4-hour and 1-hour charts will likely yield better results than trying to trade a counter-trend.
Your Next Steps for Creating a Fibonacci Retracements Strategy
If you’re wondering how to create a Fibonacci trading system, you can:
1. Spend some time experimenting with the Fibonacci retracement tool on historical price charts.
2. Apply Fibonacci retracements to live charts and revisit them to discover how the price reacted at the key levels.
3. Once you feel you have a decent understanding of how to use Fibonacci retracements, you can open an FXOpen account and use a free demo account to test them in live markets.
4. Take notes of what works and what doesn’t, and begin to formulate a trading strategy.
5. Experiment further with indicators you’re familiar with to see if they can provide extra confirmation for your trades.
6. Continually practise and refine your strategy until you’re ready to use it for real. Don’t forget risk management.
7. Learn more about Fibonacci trading and keep refining your strategy until you’re happy with it.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
UK100 - Bearish trend to continueUK100 looks like it's willing to continue falling. I am taking short position here.
Looking at GOLD falling and indicies rising gives me an idea:
Once gold find its support at 2035-2010 levels it will pump back up and indicies will fall down once again with the DXY still finding it's bottom 3-4 EW move.
I sell a big sell !!!A big structure was broken, and retested, so I see a short between 7878 and 7866. Use a risk:ratio of 1:2, good luck.
UK100 to start a selloff?UK100 - 24h expiry -
We are trading at overbought extremes.
Short term MACD has turned negative.
A break of 7800 is needed to confirm follow through negative momentum.
Short term bias has turned negative.
We look for losses to be extended today.
We look to Sell a break of 7799 (stop at 7838)
Our profit targets will be 7701 and 7681
Resistance: 7835 / 7860 / 7880
Support: 7809 / 7780 / 7750
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Short FTSEMy simple short idea, divergance on few time frames. We are overbought, no reason for more upside for me.
Take care
UK100 Supply And demand Short AnalysisSee chart for top-down analysis on price turning from inside out with confirmation. Trending into sideways into downtrend and looking to join the trend to the downside with SL above all structure supply.
UK100 TECHNICAL ANALYSIS FOR SHORTwatch price action in this zone if the first resistance zone is respected. go to 1hrs time frame and look for entry.
if its not respected look at the next resistance zone i highlighted with a parrallel line.
UK100 FTSE Technical Analysis and Trade IdeaIn this video we focus on the FTSE UK100, however, the US100, US30, UK100, and DE30 are analysed to find a common theme between these four instruments. The stock markets have traded into key support levels and have been rangebound for some time. We are now seeing some bearish momentum evident in the charts. The trend, price action, price gaps, market structure, and a potential trade opportunity are covered. It is important to note that this is not financial advice and is meant for educational purposes only.
