Butterfly Sell chart pattern - best forex trading signals provider

Butterfly Sell chart pattern ~ best forex trading signals provider

Butterfly Sell price target

EUR/USD Technical Chart Analysis

On Friday, we had a perfect butterfly sell chart pattern. Today, the Euro initially went down (Evening Star chart pattern from Friday) and found support at the 61.80 %  fib retracement (1.2889) and resistance at the hourly trend line (blue).

1 hour Butterfly sell pattern

Typical Consolidation Pattern

On the 5 min EURUSD Chart below another typical three swing consolidation pattern is visible just at the daily Pivot Point support. The breakout of the consolidation pattern occurred with the start of the new hourly candle at 12. a.m. (Important Timing Point). The up move of the Euro found resistance at the hourly downward sloping trend line.


Interestingly, the consolidation pattern and the false breakout to the 161 % Fibonacci level at 1.2979 is very similar to the butterfly sell chart pattern. After the false price breakout to the upside to the major 161 % butterfly sell target market reversed and retraced the up move. The Euro targeted the final 161 % butterfly sell target at 1.2940, where the EURUSD paused a while before market continued the downward move to the weekly Pivot Point. The weekly Pivot provided solid support (together with the 100 % Fibonacci Extension level of the recent swing at 1.2932) and the Euro bounced back up to the daily Pivot Point.

Overall, the daily Pivot Point provided solid support at 11 a.m.. After the confirmed break of the daily Pivot to the downside at around 3 p.m. the daily Pivot changed its role from support to resistance as often after a confirmed break of important chart levels.

5 min EURUSD Analysis

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In this realistic world, to be successful in any trade or even in Forex Trading - action forex trading signals

In this realistic world, to be successful in any trade or even in Forex Trading ~ action forex trading signals

In this realistic world, to be successful in any trade or even in Forex Trading, you have to know the rules and learn to do it well. Learning Forex Trading is not like babies learning baby-crawl. It is more like babies learning of how to walk by the parent helping them by hold on their arms to balance up. 

As a saying 98% of Forex Trader lost money on forex, yet only 2% success from forex trading. Why is that so? 2% of successful traders stick to their "golden rules" and will avoid all kinds of failure which others made. Always learn from other people experience before starting out yourself. If you have ever went for a forex workshop or seminar, you will also realize that all successful forex trader has a past history of getting burned by trading forex too.

So start to follow these rules that had been set by the successful trader!

If unsure, ask for advice

Before start trading, it will be better to trade with a group of friends where you can discuss it before making decision. Read up on books and forum to gather more information. Always practice trading on free trial account before going live. The more you understand the system the better your potential to success.

Always start small. Greed Kills...

Trading Forex is risky by all means; even all gurus or banker can suffer from unexpected losses. The point is never be tempted to trade with more than you afford now or future.

The market is always smarter than you!

Dont ever be emotion and rash in trading; assuming can be result to 75% loss. Treat forex market as a war zone. Be prepare for trading by analyze the market before going for war. "Study your enemy".

Treat forex trading as a game

No no kidding.. Maybe because of some winning trade, you might feel confident as in "over-confident" which can lead you to another disaster. Apply all training and stick to it.

Stop loss is a must

Never assume the market will turn around, always put a stop loss in all trades. Losing small percents is always better than losing 100 percents.

Disciplined matters

When you have found out your trading system, stick to it. Dont even try to be smart by modify it. Modifying only apply in doing research and development time. Or else just follow the rules.

Stay away from news

The most news affects the market movement, stay out from news and take yourself a break. After an hour later than you can continues trading as per normal. Some traders like to during news period. All depend on the strategy that the trader using. Non direction trading strategy will always be in the market, no matter theres news or none.

There are a lots of trading method and strategy out there like; chart analyses, fundamental, trending, moving average, candlestick, Non Direction Trading and etc.. 

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3 Ways to Identify Support and Resistance 5 Chart Examples - forex trading customer reviews

3 Ways to Identify Support and Resistance 5 Chart Examples ~ forex trading customer reviews

3 Ways to Identify Support and Resistance - 5 Chart Examples

By Elliott Wave International

Todays lesson considers three ways to identify price support and resistance in the markets you trade.

1. Previous highs and lows
2. Trendline support
3. Fibonacci Ratios

These examples are adapted from Jeffrey Kennedys Traders Classroom service.

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1) Uptrends terminate at resistance while downtrends terminate at support. Previous highs and lows often act as resistance and support.

In ALCOA Inc (AA), the September 2012 selloff found support near the previous July 2012 low.

The February 2013 peak occurred following a test of resistance at the January peak at $9.33.

2) Trendlines offer resistance and support for prices.

The 2008 advance in Gold found support numerous times near the trendline that connected the lows of the move, as you can see below:

Conversely, the trendline connecting the highs of Wheats 2012-2013 decline provided resistance for countertrend price action.

3) Fibonacci ratios also identify resistance and support. As Elliotticians, we often look at retracements, the most common being .382, .500 and .618. In Akamai Tech, Fibonacci support ignited the July and November 2012 rallies:

In the same chart you can also notice how Fibonacci resistance in AKAM halted the July 2012 and February advances.

For more free trading lessons on trendlines, download Jeffrey Kennedys free 14-page eBook, Trading the Line -- 5 Ways You Can Use Trendlines to Improve Your Trading Decisions. It explains the power of simple trendlines, how to draw them, and how to determine when the trend has actually changed. Download your free eBook.

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Important chart levels like Pivot Points - forex trading co tv signals

Important chart levels like Pivot Points ~ forex trading co tv signals

Daily Pivot Points

Consolidation patterns 

5 min Daily Pivot Point

The Euro

closed at the low of June 1st (pink line) after market slightly penetrated this important chart level during the day. Today, market gaped slightly below Fridays low but initially reversed, closed the gap and consolidated around the pink line most of the day. On the 5 min chart we can see that the daily low of June 1st (pink line) acted as support/ resistance. The breakout candle at 3 p.m. (penetrating the pink line) did not get confirmed and market reversed to the upside after hitting the price zone of the consolidation between 9 - 10 a.m. GMT and the 61.80 % fib extension. The main resistance to the upside was the daily pivot point.


The Euro formed a bull flag/ typical 3-wave-consolidation (red circle) before penetrating the daily pivot (important chart level) for the third time (level already weaken) whereby market breached this important chart level (no confirmation) and triggered most of the stops above the daily pivot. The Euro is currently consolidation at the daily pivot.

The positioning of the stops above a high/low or striking levels is easy to anticipate and market often tends to trigger these stops. Very often these levels get penetrated and stops/limit orders get triggered but market reversed (no confirmed breakout-only stop fishing).

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Candlestick patterns Hammer and Evening star - set and forget forex trading signals

Candlestick patterns Hammer and Evening star ~ set and forget forex trading signals

Hammer and Evening Star

Evening Star and Hammer Chart pattern

4 hour Evening Star pattern

EUR/USD

retraced up to the weekly Pivot point where market formed a kind of Evening Star pattern and market price started to turn around.

On the 1 hour Euro US Dollar chart (last 10 candlesticks) we see how market closed at support and breached it with the beginning of the new hourly candle [Breakout Timing setup-red ellipses, market closed at each support level (10 SMA, 20 SMA and daily pivot point)] and broke through it with the new hourly candle).

The repeated pattern of a bearish candle close at a support level and the following break of this support level with the beginning of a new candle often occurs in a strong bearish trend or a surge in downside momentum.

1 hour Hammer candlestick

5 min Pivot points

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Watch For Double Top Neckline on Usdcad - standard bank forex trading reviews

Watch For Double Top Neckline on Usdcad ~ standard bank forex trading reviews

In the last post on usdcad where I forecast a bearish move. Read the analysis here.   I put a sell order and since I have been raking about 180pips risking just 85pips.

 

I closed about 60% of my trade and will allow the rest to run as i watch price action along the way. I might also add to my position if I see a good bearish continuation wave set up.

 

Presently market is moving well and more bearish move is expected especially if the srong intra day support indicated below is bridged.

 

 

I also spotted a reversal double top formation which if completed could add more reasons to why I chose to sell Usdcad

 

Watch out as price play the game and we follow

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Triangle Chart Pattern - current forex trading signals

Triangle Chart Pattern ~ current forex trading signals

Triangle Consolidation

Ending Diagonal failed

The Euro moved lower, consolidated at yesterdays low with a three swing triangle consolidation pattern (9 - 11 a.m. GMT, red circle on 5 min chart below) and resumed its down trend to the 127 % butterfly target/ daily S2 to find some support.

Yesterdays ending diagonal triangle failed. We might interpret the price action on the hourly/ 4-hour chart as a wedge/ ending diagonal (blue lines) but the pattern does not totally convince me. A fresh lower low would lead to a failure of the pattern.  However, the wedge pattern would fit to the butterfly reversal pattern.

The main question will be whether the 127 % butterfly target (1.2163) could provide some solid support or whether the Euro will continue to the 161 % butterfly target at 1.2005.

On the 4-hour chart (below) we see a bear flag (blue circle), which got triggered and the Euro moved to the 127% butterfly target. This support level further got strengthened due to the daily S2 and the 100 % fib extension. The green circles show how the 20 SMA provided resistance and the red circles show yesterdays timing setups.


On the 5 min chart (below) we see the three wave/ triangle consolidation (red circle), which is visible as a bear flag on the 1 hour chart. The green circle shows a small bear flag prior to the breach of yesterdays low (red line) with the beginning of the new hourly candle at 11 a.m. (Timing). The blue circle on the 5 min chart shows another bear flag which got triggered with the beginning of the new 4-hour candle at 12 a.m. (Timing setup).
The Euro found support in the price zone of the 127 % butterfly target/ daily S2. The fact that market could not breach the 61.80 % fib extensions from the previous swings and bounced from it (not consolidated at it- no bear flag) is often a sign for a larger consolidation or reversal (brown circle).

Next support zone would be the 61.80 % weekly fib extension/ weekly S1 at 1.2133.
Next resistance is Mondays gap opening at 1.2252 and the low of June 1st at 1.2288

4-hour Failed Ending Diagonal Pattern

5 min Triangle Pattern

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Chart Pattern Analysis Forex Manipulation - forex auto trading signals

Chart Pattern Analysis Forex Manipulation ~ forex auto trading signals

Trading the Forex Market Price Manipulation

Index:


Forex Price Rigging and Manipulating Series

• Overview of the Forex Price Manipulation:
• Is Forex too big to rig?
• Price Rigging: Forex Market Manipulation analyzed!
• Trading Strategy: How to trade with the FX Price Manipulation

Technical Chart Analysis and Trading Strategies

• Support and Resistance levels, Consolidation patterns
• Fibonacci Analysis
• Breakout Trading Strategies
• Important Chart Patterns -  Price Rejection, Fibonacci Extension, Continuation Chart Patterns
• Do Popular Chart Patterns work? - Price Manipulation
• High Probability Trading Setup Guide
• Candlestick Chart Patterns

The Chart Analysis Legend includes the mainly used Chart Reading Patterns, Methods and Tools

My current shorter term trading strategy

Trading strategies and opinions have evolved and partly changed over time and will do so in future.

My current shorter term trading strategy is to read the intention of the Market Manipulators and to focus on their manipulative stop runs and faked mainstream trading signals at striking mainstream price levels like Highs/ Lows, Round Numbers and Pivot Points in the Forex Majors like EUR/USD, GBP/USD.. EUR/GBP as well as in other markets like S&P 500 (SPY), Dow Jones Industrial, DAX...

I currently do not use Fibonacci analysis, trend lines, SMAs or any popular chart patterns. Often these mainstream trading signals are faked signals.

However, for the longer term, it is also very important to analysis the fundamentals of the currencies. I personally like the investment bank reports on http://www.efxnews.com,/ the analysis on zerohedge.com and the fx pulse reports and gic weekly from Morgan Stanley. 

Manipulation of Popular Chart Levels

The main message of this website is just below:

Popular Chart Levels are often tacitcally misused for faked Trading Signals and Stop Runs by Manipulators in the short run before the fundamentals regain and the major trends resume.

Some Popular Trading Levels:

•  Important Highs/ Lows
•  Round Numbers
•  Pivot Points

Market price often comes back to popular chart levels like Round Numbers / Pivot Points and frequently penetrates them to trigger mainstream trading signals and to run for stops. Particularly, market Highs and Lows are important Manipulation points, where false price breakouts (false first breakout) occur to clear stop loss orders and to trigger breakout limit orders before market reverses back. Be careful with these mainstream trading strategies. Moreover watch out for pure stop runs at these chart levels, which can lead to a strong market turn around. In general, the first price breakout at important chart levels is often a false one.

Often a minor false price breakout or only a price touch of Round Numbers and Pivot Points comes with the first test of these chart levels to trigger close-by breakout orders and stop orders. The retracement to catch some stops of the breakout traders often gives the faked impression that the popular chart level holds as Support/ Resistance, thus encouraging mainstream traders to position accordingly. However, market often goes for a second test of the popular chart levels to clear the stop orders above/ below important chart levels before either retracing back or breaking through the price level targeting the next important mainstream level (stop order and limit order zone).

More in detail, if market price only touches (not really penetrating) the important chart level like Round Numbers and Pivot Points and retraces back then a second test of this market level is likely to catch the stop loss and breakout orders at this support / resistance levels of the traders who already had positioned themselves plus the new traders who interpreted the prior hold of the support/ resistance area as a reason to enter the market.
However, if market price already had penetrated the important support / resistance level to catch most of the stop loss orders and breakout orders before retracing back (failed first breakout) then the chances of a second test of the important chart level would diminish as the intention of the market manipulators to catch the stop loss orders and breakout orders already got accomplished.

Moreover, a clean break through a striking trading level without an immediate price retest is seldom and if so then the chance of a retest in near future is likely to catch stop orders of the breakout traders and to minimize the chance of an easy trade with a small stop lose at important price levels. Furthermore, the reiterating stop triggering process at striking chart levels would be in favour of a clean breakout to happen more often in the absence of any market price manipulation.

In general, market price goes there where the stop loss and breakout orders are anticipated.


Read more:  Overview of the Forex Price Manipulation




Below and in the left sidebar:  EUR/USD analysis from the past

Forex Market Manipulation Analysis

Daily Chart Analysis of the EUR/USD - Stop Hunting

The two orange arrows on the top of the 5 min EURUSD chart below (last chart) show examples for the Stop Hunting- and Market Price Rigging process and it further illustrates the importance of breakout trading strategies. The recurring manipulative Stop hunting strategy in Forex is used by the FX Manipulators to fool breakout traders with the typical failed first breakout. The Market Price Rigging Manipulation via Stop Runs allows the Forex Manipulators to catch the stops of the breakout traders and thus this price rigging strategy most often prevents the typical breakout trader to successfully participate in the true breakout.

Most often at striking price levels, like - highs/ lows/ round numbers/ mainstream Support and Resistance levels -, the market price manipulators enforce the failed first breakout - stop hunting. The Stops of the breakout traders get cleared, who entered the market after their limit orders got triggered through the penetration of the striking level.

Furthermore, many stop loss orders of other traders got also cleared through the slight penetration of the striking chart level. After the price rigging strategy got accomplished and most stops of the breakout traders are already taken out of the market then either the true breakout occurs to catch and clear farther positioned stop loss orders of other traders at the striking level or market reverses to target the opposite striking chart level where many stop loss orders of the fooled breakout traders are located and new breakout traders will try to catch the trend again.

Read More in the Price Rigging and Manipulation Series

The highlighted Doji candles on the 5 min and on the 1 hour chart could have been used as trading triggers. There are also many continuation chart patterns on the 5 min chart (green circles) and an inverted Head and Shoulders chart pattern on the 4 hour/ 1 hour chart.

4 hour EUR/USD Chart Analysis/ Patterns

1 hour Inverse -Inverted- Head and Shoulders pattern, neckline, Doji

5 min Doji candle, Continuation patterns,Pivots

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Fib extensions - forex trading signals free software

Fib extensions ~ forex trading signals free software

Trading the Fib extension levels 

Important Fib Extensions: 61.80 % 100 % 161 % 

Daily Candlestick pattern Doji

Yesterday, the Euro found resistance at Januarys low 2012 (orange line) and the 61.80 % fib retracement of the recent swing (EUR/USD Market Recap 07.06.12).

Yesterdays daily candle could not close above the 20 SMA and closed in the price range of the prior daily candle (false breakout). Furthermore, market formed a Doji bar or evening star chart pattern, which led to a sharp drop in price in todays Asian and European session.

1 hour Weekly Pivot point S/R

Fibonacci Levels and Fibonacci Trading

On the hourly chart we see that the sharp price drop started at 1 a.m. GMT ,right after yesterdays daily doji bar closed. The Euro got initially pushed down by the 10 SMA and 20 SMA. The price drop at 1 a.m. triggered the bear flag (blue circle) and the Euro moved to the 100 % fib extension (A-B at C ) and formed the second bear flag (D) at the green trend line and the 100 % fib extension (also 61.80 % fib retracement).

In the following, the Euro broke put of the bear flag and resumed its down trend  to the weekly pivot point. (EUR/USD respected the resistance in form of a bear, which means that market could not sufficiently bounce back from support-bearish signal). Recently, market respected (touched) the hourly 10 SMA (green circle) at 3 p.m. and broke through it with the next hourly candle. The 4-hour candle closing at 4 p.m. also looks like a doji (support at the weekly pivot).

5 min ending diagonal, bear flag

On the 5 min chart we see the different bear flags (circled). After EUR/USD broke out of the first bear flag (blue circle) the Euro went to the 161,80 % fib extension (1-2 at 3) where market formed the second bear flag (red circle).The Euro broke out of the bear flag and went to the 100 % fib extension (5-6 at 7).

The EUR/USD found support at the weekly pivot (slightly penetrated but no confirmation, stop fishing below the low of June 6th-blue line) where it formed a kind of ending diagonal ((8-impulsive,9-correction, abcde-ending diagonal). The correction high (9-green line) is the initial target after the ending diagonal terminated, which market reached quickly (directional move). Recently, the Euro found resistance at the daily S2 (1.2492-not shown), the prior consolidation (red circle) and particularly the 61.80 % fib retracement (5-e-not shown) at 1.2493.

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Trading the Market High of (updated) - forex price action trading signals

Trading the Market High of (updated) ~ forex price action trading signals

EUR USD Market High

After the Euro USD broke out of the larger consolidation pattern on the daily chart last week market approached the high of 2012 yesterday at 1.3486. Market closed at the high of 2012 yesterday and today the Euro broke through it (Breakout Trading/ Timing- see red circle). A similar pattern occurred at the monthly R1 (red circle), where the daily candle also closed at the monthly R1 before market broke the monthly R1 with the next daily candle.
Currently, the Euro USD is trading at the monthly R2.

Daily - Support/ Resistance

Todays rise started with a kind of bull flag between 8 a.m. and 9 a.m.. The Euro USD rose to the monthly R2 at 11 a.m. where market temporarily found resistance. Market broke the monthly R2 with the beginning of the new hourly candle at 3 p.m.. The 5 min candle at 3 p.m. closed at the recent daily high and the next 5 min candle broke this resistance (red circle-Breakout Timing). The  monthly R2 changed its role from resistance to support and held the market so far. 

5 min Euro USD Pivot Points, S/R

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Price shakeouts of weak hands - forex.com trading signals

Price shakeouts of weak hands ~ forex.com trading signals

Forex Chart Patterns

4-hour Euro Dollar

1 hour Euro Dollar

5 min Euro Dollar Chart Analysis

Consolidation Patterns

Weak hands getting shaked out in Trading

The Euro moved up to the1.2329 resistance level (purple line-October 2008 low and 20 SMA on the 4-hour chart) and from there market resumed its down trend and the Euro created a new daily low.

On the 5 min chart (below) we see that consolidations very often consists of three swings (red circles). One of them occurred in the Asian session between 2 - 3 a.m. GMT and after termination market moved to the 100 % fib extension. Another one occurred at about 10 a.m. and this consolidation is also the left shoulder of the Head and Shoulder pattern on todays market top, which took place at the 4-hour 20 SMA and the October 2008 low (purple line). The right shoulder is also a three swing consolidation and after termination the Euro penetrated the brown neckline. However, market consolidated below the neckline and slightly penetrated the neckline to the upside again. A reversal (failing of the H&S) or at least a shakeout got more likely due to the length of the consolidation below the neckline (Good trading opportunities at important levels/ pattern termination normally do not give much time for positioning as it is recognized by many traders and thus triggered fast).

The lengthy consolidation followed by the upside break of this consolidation through the neckline led to a kind of shakeout of the weak hands. The Euro found resistance at the 20 SMA on the 5 min chart and the price zone of the prior consolidation (right shoulder) so that the Euro resumed the down trend and triggered the H&S pattern. The 1 a.m. hourly candle triggered the stops below todays (green line) and yesterdays low (blue line) but the candle closed and formed a bull flag (on 5 min chart) at the recent hourly low at 1.2281 (blue line). The bull flag (blue circle) got triggered and market moved to the daily pivot and the 100 % fib extension on the 5 min chart. From there, the Euro resumed its down trend again. The 2 p.m. hourly candle closed at the daily S1 (red circle on hourly, weakening this level) and the following hourly candle starting at 3 p.m. moved below it and closed at Mondays gap opening at 1.2253 (brown line). Another timing setup occurred with the start of the new 4-hour candle at 4 p.m.. The Euro terminated its three swing consolidation pattern on the 5 min chart at 3:45 p.m. (red circle) and market moved lower again after the previous 4-hour candle closed and weaken the gap opening support (brown line). However, the Euro did not confirm the breach of the prior consolidation low at 1.2245 (green circle) and the Euro reversed and the 4 p.m. hourly candle closed at the gap opening (brown line). Market is currently consolidating around this level.

The pin bar at 8:25 a.m. after the penetration of the 1.2288 level (pink line-low of June 1st) led to a non-confirmation of the break and the Euro moved up again after the bull flag just above the pink line. A hint for the continuation was the close of the 9:20 candle at/above the daily pivot with the confirmation of the following 5 min candle.

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Rejection Candle Chart Patterns Hammer - what are forex trading signals

Rejection Candle Chart Patterns Hammer ~ what are forex trading signals

Candlestick Chart Analysis

Hammer Rejection Candle

The Euro moved upwards against the US Dollar after the rejection candle/ hammer candlestick pattern on the 13th of November. There are important Support/ Resistance levels on the daily EURO US Dollar chart. Market currently trades at the daily confluence resistance level consisting of the 20 SMA and further the monthly S1 and the low of October 1st, which both held the market on the 15th of November at around 1.28 (First test). 

During the start of the US session today, market penetrated the 1.28 resistance level (second test) and moved up to the weekly R1. On the 5 min chart we see that market closed at the 1.28 resistance level with a bullish candle at 3:40 p.m. GMT just before  the Euro breached this level (Breakout Timing). The following breakout candle at 3:45 p.m. got high bullish momentum because of the stops placed above the 1.28 level. However, there was no follow through or breakout confirmation on the 5 min chart but market retested the 1.28 level and held 1.28 so far. As long as the Euro holds this level we might see a continuation pattern triggered for a true or false breakout with the start of the new daily candle (Bullish daily candle close at daily resistance-Breakout trading). The next resistance level might be the low of October 11th at 1.2826.

The 4 hour chart shows the two rejection candles on the 13th of November which contributed to the daily rejection candle.

[The hourly chart shows the news shakeout/ stop running on the 14th of November. Market cleared the stops above resistance at 1.2755 (low of Sept. 10th) and then EUR/USD reversed and the logical next target was the recent low to clear the stops of the breakout trader at 1.2724. Stop running is an important driving force in Trading.]

On the hourly and 5 min chart we see that the EUR/USD found support at the low of Sept. 10th and the Euro continued its upward move at 1 p.m. due to the increasing hourly 20 SMA and 200 SMA on the 5 min chart.


On most of the charts we see:

How prices respected support and resistance (blue ellipses), purely stop running behaviour (red arrows), breakout trading setups (red ellipses), continuation chart patterns (most of green ellipses) and support and resistance due to consolidation price zones (orange arrows).

Daily Support and Resistance EURUSD

4-hour Rejection Candles Hammer 

1 hour Hammer/ Pin bar Euro US Dollar Candlestick Chart Patterns

5 min Technical Chart Analysis Euro US Dollar

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Wedge Pattern - forex trading signals canada

Wedge Pattern ~ forex trading signals canada

Trading the Wedge

Euro Dollar Chart Analysis

Daily Head and Shoulder

Wedge Pattern on the Euro Chart

During recent trading days the Euro formed a kind of up trending wedge pattern on the daily/ 4-hour chart. The wedge pattern found resistance at the daily low of June 1st (pink line) and the trading price zone of the recent consolidation (green daily circle) and support at the 127 % butterfly target and the 61,80 % weekly fib extension.

The Euro broke below the rising pink daily trend line and market cleared the stops below the recent daily low (13 of July-blue line). The  wedge pattern formed three rising highs (happens often) before market turned around.

4-hour

The 4-hour chart (above) shows the typical timing setup (red circle). The Euro broke below the daily S1, yesterdays low (red line) and the rising daily trend line (pink line) after the prior 4-hour candle closed at support (respecting it) and the new 4-hour candle started (not immediately).

The hourly chart (below) shows that the price zone of the bull flag (green circle) provided some support yesterday (9-10 a.m.). Yesterdays two marked candles with the red ellipses show some bearish pressure. The first hourly candle marks the third high but market retraced most of the hourly trading range (rejection) and the second marked candle is a doji (also kind of evening star pattern). Today, the Euro formed a consolidation between the daily and weekly pivot but market created lower highs and a lower low before the Euro broke below it.

1 hour Euro Dollar Analysis

The 5 min chart (below) shows how price reacted at support/ resistance and some consolidations whereby the consolidation at about 10 a.m. GMT had the typical three-wave structure. The marked candle at 2 p.m. (red ellipse) between the two consolidation patterns shows that the break of the red support line occurred with the beginning of the new hourly candle (Timing). The daily S2 provided support at 2 p.m. and changed its role to resistance at 4:45 p.m..

5 min Euro Dollar Analysis

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Weekly Chart Analysis - forex trading signals facebook

Weekly Chart Analysis ~ forex trading signals facebook

Weekly and Daily Analysis

Inverted Head and Shoulders

Weekly Chart Analysis

Daily Chart Analysis

On the weekly chart we observe that the Euro moved up to the January 2012 low (orange line).

On the daily chart we see that EUR/USD respected (closed at) the 20 SMA yesterday and today price moved above the 20 SMA up to the Januarys low at 1.2624 (orange line) and the 61.80 % fib retracement at 1.2620. This resistance zone held the Euro and price fell back from this level into the price range of yesterdays daily candle. EUR/USD already failed to recapture the low from January 2012 on May 28th (recent high from May 28th coincides with Januarys low).

1 hour EUR/USD forex chart analysis

On the hourly chart (above) we see that the Euro started todays up move from the recent swing high at 1.2543 (blue line-C). After the back test of this level (resistance became support-C) EUR/USD moved above the weekly R1 but market found  resistance at the orange line (low from January 2012), 61.80 fib retracement, daily  R1 and the 61.80 % fib extension (A-B at C)

Overall, the Euro could not overcome this resistance zone at about 1.2624 and in the following price sharply fell back from resistance at 4 p.m. before price found solid support at at the 10 SMA on the 4 hour chart at 1.2546 (4 p.m. candle-not shown) closely to the recent swing high (blue line-support-D) at 1.2543.

5 min Inverted head and shoulder

On the 5 min chart we see that EUR/USD formed a typical 3 wave consolidation pattern at the price level of the weekly R1 (between 1-2 p.m.) before the Euro resumed its uptrend terminating at the resistance zone. The Euro reversed sharply and took out the recent striking low at 1.2562.

Inverted Head and Shoulders chart pattern

The recent consolidation from the beginning of todays European session (8 a.m. - 10 a.m.-not shown) provided some support and led to a pause of the sudden price drop before market headed up again at 4:35 p.m. after price reached the 10 SMA on the 4 hour chart (not shown). The Euro formed a kind of inverted Head & Shoulder (3,4,5), which got triggered and market moved up to the consolidation pattern at todays high (6).

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Important psychological chart levels - forex trading signals best

Important psychological chart levels ~ forex trading signals best

1.30 price zone in EURUSD

Trading Important Chart levels

The Euro

found resistance at the Head and Shoulders neckline yesterday and formed a Three Drives pattern (see 1 hour chart). From this top, the EUR/USD moved down whereby the downside momentum increased today.

The hourly 200 SMA, the daily S1 and the weekly Pivot point provided temporary support for the Euro before the market moved lower to the psychological important 1.30 level.
Many stops can be anticipated below this major psychological level so that at least a temporary breach of this support level could happen to clear some stops. The 61.80 % fib extension at 1.3005 on the 4 hour EUR/USD chart got respected by the 4 hour candle starting at 8 a.m. GMT before the new 4 hour candle breached this important psychological 1.30 level (Timing setup).

The strong 5 min momentum candle at 1.30 p.m. shows the momentum created by the stop triggering and the follow through. The EUR/USD went lower to the next major support level at around 1.2957 created by the 100 % fib extension and the 200 SMA on the 4 hour chart and the daily S3, which supported the Euro US Dollar so far.

On the daily Euro chart we have a potential bearish "222" Gartley pattern.

4 hour Fibonacci extensions

Daily Gartley pattern

1 hour Head and Shoulders pattern 

 

5 min Neckline break, Momentum

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