The problem with this setup is the super close levels and the consolidation before the 2 bar. The first thing is the 2 bar is large which is a good thing and it is also rejecting a pretty key resistance level.
This will probably work out but before it does it has to break out and as a rule we don’t want to be getting into trade and “Hoping” a level breaks for the trade to work out. We never want to be trading and hoping a S/R level will give and we normally expect and trade thinking they will hold. Much safer trading thinking they will hold than trading hoping they will break.
My chart below of the EURUSD daily shows a few things. The first is the close resistance and support level. The other is the consolidation before this 2 bar was formed. For this to work out or for price to move it is going to have to breakout either way. Either through the congestion below or up back through the resistance zone.
If it can gather momentum and break lower than there is plenty of space for a solid move lower, but if and when that happens is the question…
Just a kind reminder; to make it easier for myself and others to comment and help with questions please name clearly above the chart the pair and the time frame. Makes it far easier to check things out if we can look at our own charts and levels marked etc
Just a few trades i’m currently watching for PA in the coming days/weeks.
All of them are on the daily timeframe (only frame i’m looking for setups at the moment).
Also they would all be with the recent trend (imo) as those are the only trades i’m considering when learning.
CADCHF (short)
Maybe put it abit lower around 0.9144 to be more in line with recent lows?
XAUUSD (short)
Level marked came from way back in 2011. Dont know if that is just too long ago but seeing as there is no recent S/R zone nearby i thought i would take that.
Would love to hear some feedback on the levels marked and the comments i made on 2 of them.
I’m watching a few more levels right now that have my attention but that i’m not quite sure about so i thought i would post these up first to see if i’m on the right track or completely off.
yes, i want to know both…
what is the parameter to see if trend has change from down to up since there is no support n resistance on any time frame and how to measure the target level without S/R line just like picture below?
here i attach picture, grey rectangle is area without S/R line, green arrow is sell sign because there is support line (when trend is down)
Hello.I take this one on EurAud (Short). The only one thing that I worry is uptrend but strong BEEB and 1.28000 level is good for short I think.I will be very happy to take some time and comment
Here is the chart
What do people think about this engulfing bar forming on the AudChf Daily? It is within a range and I also think is good in size but not too sure about the location, would you consider the same? … opinions from one of the seniors or from Jonathon would be really appreciated
Hey there Forbiden,
I have also just gotten into this trade based on the 4 hour chart (a bit late)
Chart below is the Daily (still 2 hours to close)
I have shown additional confluence in terms of 61% Fib resistance on the daily
I am a bit concerned as Yumei points out about the recent strong uptrend…
Candle has closed now and here are a few things i see:
(screenshot for info on levels)
I draw my resistance level at the BRN of 1.2800 and the BEEB didn’t form at this level but quite abit below it.
(dont know if i’m correct in drawing my level here, still learning ;))
As pointed out the uptrend is rather strong and when comparing this BEEB with the preceding bars it is rather small (or not large enough).
When i draw fib levels on the chart (which i normally dont but just for learning purposes) it doesn’t quite hit the 61.8 level which on my chart is more in line with the BRN of 1.2800.
Would this still be a valid setup in terms of it bouncing (reversing) of the resistance level even though it didn’t quite reach it?
Or would it have to hit (or at least end up closer then it did now) the level for it to be valid?
I understand that if my level was drawn incorrectly my question might become obsolete.
For this pair, I reckon it currently uptrend.
I would wait for the price to retrace back to support level at 1.25689 (fib 50.0%), watch for a PA signal there to go long
For this pair, I reckon it currently uptrend.
I would wait for the price to retrace back to support level at 1.25689 (fib 50.0%), watch for a PA signal there to go long
Good point your making. Looking at the chart again this would be more of a up trend rather then a retracement from a down trend.
Then ofcourse, as you said, we would be looking for a retracement lower to support so we can look for PA to go long.
Definitely something for me to learn from when looking for the overal trend.
Thanks for your advice.
Remitu
Ps. The 50% fib level would be in line with some of the lows around 18 jan.
