On the weekly time frame, we see price at a resistant level and likely forming a double top. Buyers beware at this point as sellers are revving up to take over…but the lower time frames will give us more details as to what price is doing.
When we have a squeeze cf on the 4hr time frame, we usually go to 1hr tf to look for a 321 entry. This gives us a suggestion of where the squeeze cf will break out to…and from all indication, its highly likely to give a bearish breakout…see chart here…
UPDATE ON EURUSD
Price did dance (trickishly though) as expected and presently we have taken 2 short positions on EurUsd
ENTRY 1. was at 1.3740
ENTRY 2. was at 1.3789
Stop Loss is at 1.3869
TP 1 is at 1.3415
TP 2 is at 1.2754
TP 3 IS at 1.2118
Hope this turns out well…
If you missed initial entry on EurUsd, dont fret yet…Price might give u another opportunity to enter at a good point…
Will keep you posted as this pair unfolds…
The yen pairs are showing interesting signs right now…of top importance to us at Forex Traders Academy is the NzdJpy…
Double top + squeezy candle formation + Bearish bat formation…etc, we just might see a big drop in this pair…
Charts and more detailed analysis will come up later…Wish u guys happier pipping…
Here’s the analysis as promised…
On the weekly time frame, we see a bearish bat complete at a close range to an anticipated resistant point…
On the daily tf, we see a bearish crab formation complete at same area as the weekly bearish…
On the 4hr tf, we see a bearish viglo formation…Price gave us a squeeze cf, but no break out yet for us to take a trade…Moreso the squeeze cf range is too wide and not so convenient to trade, so we’d prefer to see a better candle formation for us to go short on this pair.
I have read your very first post, where you were been writing about price action being the most effective way how to treat the market. Why did you turn into harmonics?
Happy new year to everyone…last year was a good one for me and i pray this year would even be better…
Started trading this yearwith a short position taken on AudJpy this week…and so far so good…(150+ pips and still counting)…
I will try to post here more often and i hope my posts will help at least 1 person to improve his/her trading.
AudJpy on the monthly tf showed an overbought position at a resistant level,(Oct closed candle), this gives an indication of the beginning of a bearish move (i hope to do a little write up on time frame indications-how it relates to creating an effective and profitable strategy).
On the weekly tf, we wait for price to also show an overbought position, and then look for price action movements/formmations on daily tf to go short…
We had a first bearish signal in November last year…with a bearish candle formation…entry at 101.30…a new entry was given this week with a bearish 321 formation and we’re in on that at 95.20 (though we came in a bit earlier than 95.20)
with swing systerm trading. you should choose some broker have low spread. you can get better price. this is the main of this strategy. i think we can get more profit with lower cost
I will not advice to enter short for now(except you want a quick short to possibly 91.74 which is a dangerous move anyway)…the bullish correction still has some room more (as shown on the higher timeframe).it will be advisable to wait out till the daily tf shows some weakness in the present bullish move…then we’ll look to go go short again till the bearish signal on the monthly tf is exhausted…
The high risk trader would have already gone short on the gartley formation.
The less risk trader will wait for a better confirmation using any of the 3 highly recommended trend reversal candle
formation- Fakey, Squeeze, and Knife candle formations (These are well expantiated in the FTA class)
The risk aversed trader will wait for a bullish trend line break entry system (preferably on the 4hr time frame).
If you belong to group 2 or 3, keep watching the pair for possible entry.
If you belong to group 1, wish you a happy trading. recommended stop loss will be 122.62
Though going well presently, the EurUsd bullish move is not yet out of the woods for us…a look at the 4hr time frame shows that the present bullish move might just be topping out…however, we believe more on the higher time frames(weekly and monthly) suggestion which is more likely a bullish emergence (not yet an established bullish trend though)
So, this is what we will be watching out for.
on the 4hr time frame, we’ll be looking for a break of the 1.1207…point C… (giving us a possibility of having a bullish head and shoulder pattern) area to the upside for a more convincing bullish emergence…
On the weekly time frame, we see the last week candle closing as a pin bar. The high of this pin bar is
1.10091 and if this week’s candle closes above this high, we will be surer of a bullish trend emerging…
