Last week’s candle on USD/CAD has ended with an engulfing candlestick pattern.
This weekly candlestick is red from the beginning to the end. After the price compressed vertically and took all the buyer’s orders on the way up. It dropped back to the origin of the compression.
This drop created last week’s candlestick which engulfed the previous 12 candlesticks. However, the price still does not break the uptrend support line on the weekly chart.
Still, we are unable to say that the momentum has changed. If the price does break the uptrend support line, then we can say that the long term momentum has changed from bullish to bearish.
In this case, I’ll wait for the price to retrace the supply above and sell there. If the price does not break the uptrend support line, then the supply above will be too risky for sell position since the momentum remains bullish.
MACD Divergence With A New Supply For Sell Position On XAU/USD. There are a few reasons to look for a sell position in XAU/USD: 1. In the wide picture – 1W chart, the price has just arrived into a strong resistance zone. The last time that this happened was about a year and a half ago but back then, it continued to drop to 1160.00 zones. 2. In the 4H chart, there is a remarkable divergence between the MACD indicator and the price. While the price creates a higher high, the MACD creates a lower high and that divergence indicates that the recent uptrend is now powerless. 3. In the 1H chart, there is a new supply above. The last demand of the recent uptrend has broken out by this supply. This indicates that the supply is a strong one and is also on the right level to open a sell position, only if the price retraces there.
The demand below will be the final destination for this sell position.
Combination Of Fibonacci 38.2% And Fresh Supply. We can see that on the 4H, 1D, 1W and even 1M charts that, in the long term, the NZD/USD pair is in bearish momentum. At the moment, we can also see on the 4H chart that the price has just arrived at the demand level that was created about a month ago.
Two and a half weeks ago and for the first time, the price checked for this demand and picked up some unfilled buy orders from there. Then it moved up about 170 pips and dropped back down to the demand level.
But now, the price is digging deeper into that demand and we can see by the big red candles that the price has returned with more power than the first time. This indicates a high probability of breaking out the demand this time.
Fibonacci levels are significant in trading the forex market and a combination of supply level with Fibonacci 38.2% is a great setup for the sell position.
Usually, the combination of supply and Fibonacci 38.2% is a very reliable setup. If the price is able to retrace to this level, it will be a great opportunity for a sell position at the first touch.
The first target will be at 0.6500 zones and the final target is at 0.6300 which is a support zone that we can see on a 1W chart.
Quasimodo Level after MACD Divergence and Pinbar Pattern in GBP/JPY Today, this GBP/JPY pair is in a downtrend of almost 1000 pips and is still considered bearish.
Yesterday’s 1D chart, the candle has ended as a Pinbar pattern. The Pinbar candlestick pattern is a reversal pattern and is a very reliable pattern to use amongst forex traders.
In this 1D chart, there is a bullish Pinbar which shows us the first signal for a reversal opportunity.
There is also a MACD Divergence price formation. If the price creates a lower low, then the MACD creates a higher low. This indicates that the downtrend is decreasing its strength, and now gives us the second signal for reversal opportunity. This is at least for the short term.
In the 1H chart, below, there is a third signal, which is a new demand, and it is a Quasimodo level which is considered to be a very powerful level.
The confluence of these three signals, the Pinbar pattern, MACD divergence, and the Quasimodo level, all create a reliable opportunity for a reversal position.
The right level to open buy position is the demand below, which is the Quasimodo level, and of course only, if the price retraces to that level.
The first target for this position is number 1, the supply above. The final target will be number 2, the supply at the top.
Bitcoin is Re-born and Continues to Race Towards New Highs with Facebook LIBRA’s Reveal As predicted in our previous post about BTC/USD, the price remains bullish. However, the buyers are on the dominant side here because of the launching of Facebook’s LIBRA. LIBRA brings new hope for cryptocurrencies to be raised.
The last rally happened due to the giant, social media Facebook, revealing the details of its cryptocurrency LIBRA. Some of the excitement about LIBRA is that it allows people to purchase things and send money with almost zero fees.
The main difference between LIBRA and the other cryptocurrencies is that official financial organizations, such as MasterCard, Visa, and PayPal are supporting LIBRA. The fact that leading Financial Corporates are expressing trust in this or any Cryptocurrency Project affects all the other cryptocurrency markets. Hence, the main reason for the last rally in the BTC/USD price.
If we look at the 1W chart, it shows that in the long term the price is on its way to reaching the $20,000 zone. We predicted this in our previous BTC/USD post.
Below, there is a fresh (untested) demand level, as marked on the 1H chart. This fresh demand seems like an excellent level to buy at and to join the bullish momentum. If the price retraces that level, we can look for another confirmation as a MACD Divergence or maybe a Candlestick pattern in the lower time frames (15M or 5M). A confluence between the demand and one of these two will be a very reliable setup for buy position.
The long term target remains a historical record of the BTC/USD price, which is at $19,500.
A confluence of Fresh Supply and Fibonacci 61.8% in USD/CHF. Two weeks ago, seen in the W1 chart, the USD/CHF weekly candle had ended as a bearish engulfing pattern. The big red candlestick shows this bearish engulfment.
This pattern was a continuation outside bar candlestick pattern. It shows how the big red candle engulfed the one before and it also shows how significant the strength and determination of the bears were with the USD/CHF price.
Referring to the 1W or 1M charts, technically, the USD/CHF is bearish. and if we would like to sit with the dominant side, then we should look for a sell position.
In the 4H chart, we can see a very reliable setup for a sell position. A confluence of fresh supply and Fibonacci 61.8% of the recent downtrend.
In addition, on the 1W chart, we have a bearish outside bar pattern, that pattern with the confluence of fresh supply and Fibonacci 61.8% gives us enough signals to look for a sell position.
Too Risky to Sell EUR/CAD with this Supply Above? At any time frame, the EUR/CAD seems to be in bearish momentum.
In the H1 chart, the price is in a downtrend of almost 300 pips. While yesterday a fresh supply was created by the price above.
Most of this downtrend was a compression which meant that the price compressed down while picking up all the sell orders along the way.
Compression indicates a powerless movement in the price. In other words, it seems the last downtrend of the price was powerless and it’s safer to look for a reversal signal and trade against the compression.
Usually, a supply level is a great level for a sell position, but this supply is created after the price had already decreased about 250 pips and divergence has occurred between the MACD indicator and the price.
So, instead, I will use this supply as a confirmation zone and not as a level of sell position to sell this supply as is too risky now.
If the price will break out the supply, it will be a signal for reversal opportunity and we should look for a price action setup for a buy position.
Breaking out the supply above will change the momentum in the H1 chart from bearish to bullish.
Despite The “Ships War” in Strait of Hormuz, USOIL Keep Falling Down Monday 22/07/2019 In the W1 chart on USOIL, the last candlestick ended as a bearish engulfing candlestick which engulfed the three previous bullish candles.
We can see how the big red candle on the picture closed below the low of the three previous bullish candles.
That bearish Engulf Candlestick is a signal to look for a sell position on USOIL.
In the H4 chart, we can see the fresh supply above at 56.60 zones.
This fresh supply can be a great continuation level for a sell position.
If the price retraces the fresh supply above we can sell there.
The target for this sell position will be the demand below which also a great level for buy position.
A few days ago, Iran seizes a British ship in the Strait of Hormuz.
The situation between Iran and western countries is very explosive these days.
If the relationship between Iran and western countries will keep roll down it can really lead to war.
So, although the fresh supply above and the engulfing bearish candlestick, we should be really careful while selling USOIL.
If the relationship will roll down between Iran and western countries, the USOIL price might fly up and all this technical analysis will become irrelevant.
USDCHF compressed up toward the fresh supply above. Price compressed toward supply is a great price action setup. In addition, there is also a clear MACD divergence which makes this level even more reliable for sell position.
The5ers1 posted: USDCHF compressed up toward the fresh supply above. Price compressed toward supply is a great price action setup. In addition, there is also a clear MACD divergence which makes this level even more reliable for sell position.
This is my analysis on USDCHF if you trade the higher time frames.
AVERTISSEMENT SUR LE RISQUE ÉLEVÉ : Le trading de devises comporte un niveau de risque élevé qui peut ne pas convenir à tous les investisseurs.
Leffet de levier crée un risque supplémentaire et une exposition aux pertes. Avant de décider de négocier des devises, examinez attentivement vos objectifs dinvestissement, votre niveau dexpérience et votre tolérance au risque.
Vous pourriez perdre une partie ou la totalité de votre investissement initial. Ninvestissez pas largent que vous ne pouvez pas vous permettre de perdre. Renseignez-vous sur les risques associés au trading de devises et demandez conseil à un conseiller financier ou fiscal indépendant si vous avez des questions.
Toutes les données et informations sont fournies "en létat", uniquement à titre dinformation, et ne sont pas destinées à des fins de trading ou de recommandation.
Les performances passées ne sont pas indicatives des résultats futurs.