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.

---

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.

---

More info for 3 Ways to Identify Support and Resistance 5 Chart Examples ~ forex trading customer reviews:

Read more

Intra day Triangle in Eurusd - forex trading reviews uk

Intra day Triangle in Eurusd ~ forex trading reviews uk

On 31st may, there was an analysis here titled Two Face Of Eurusd and I wrote about the two possible near term scenario.

 

I though, maintained a bullish bias but with a condition. The bullish set up was satisfied and price rallied, just as expected. I posted an update before that. Read HERE. 

 

To end that post, I wrote 

 

"Its expected to be  impulsive, but a deep correction could emerge in double or triple zigzag correction which would force us to note that there could still be some move downside despite the general belief that Eurusd has bottomed on the long term"

 

With the pattern forming now, as shown in the diagram below, the recent bullish move is counting toward a double zig zag correction.

There has been some economic news  surrounding this pair of late. many investors are on the sideline and price went into a congestion ( a triangle correction).

 

 

Price broke out of the triangle with a minimal momentum and further momentum is expected for Eurusd to rally to 1.175... psychological level where the correction could finally end for the resumption of  the long term bearsih movement.

More info for Intra day Triangle in Eurusd ~ forex trading reviews uk:

Read more

DOWNLOAD FREE FOREX WORLD - how to use forex trading signals

DOWNLOAD FREE FOREX WORLD ~ how to use forex trading signals

• YOU CAN FREELY DOWNLOAD AND SURF 500 (+) FOREX STRATEGIES  
• FOREX SCALPING SYSTEMS
• TREND FOLLOWING STRATEGIES
• VOLATILITY FOREX STRATEGIES
• BOLLINGER BANDS BASED STRATEGIES
• BREAKOUT STRATEGIES
• PIVOT POINT STRATEGIES
• SUPPORT RESISTANCE STRATEGIES
• METATRADER TRADING SYSTEMS
• RENKO CHART STRATEGIES
• FOREX EBOOKS
• FREE METATRADER INDICATORS (500+)
• ECONOMIC CALENDAR
• LATEST FOREX NEWS

More info for DOWNLOAD FREE FOREX WORLD ~ how to use forex trading signals:

Read more

EurUsd Next Move Are You Ready - best forex trading course review

EurUsd Next Move Are You Ready ~ best forex trading course review

As EurUsd continues to dip, we ask ourselves— HOW LONG OR FAR WILL IT CONTINUE DOWNWARD?.

On the long term, what we are currently seeing is probably the formation of the last internal wave of the Triangle corrective pattern which started after the completion of a 8 years long bullish impulsive move in 2008. 

 

  Read more

AudNzd Preparing For A New Bullish Move - forex trading reviews news

AudNzd Preparing For A New Bullish Move ~ forex trading reviews news

From the weekly chart below, its clear how this pair has dipped from year 2010. In a clear 5-wave impulsive move, price bottomed at almost 1.00 making Aussie at par with Nzd. 

 

 

1.00 was a very strong psychology level and price , as expected, advanced in what look like a five wave impulsive bullish move of a lower degree.

The lower degree bullish move is expected to reach 1.127 which a strong resistance.

 

The pattern forming from the intra day chart below is a zigzag correction making the fourth wave of the bullish advance discussed above. 

 

 

An intraday break above 1.0817 should trigger the bullish move and the near target should be 1.127 if 1.09 resistance is broken upside

More info for AudNzd Preparing For A New Bullish Move ~ forex trading reviews news:

Read more

NzdJpy Would these combined corrective patterns trigger a bearish move - latest forex trading signals

NzdJpy Would these combined corrective patterns trigger a bearish move ~ latest forex trading signals

On 16th February, I did a video analysis pointing at a long term flat pattern emergence. See here .

The chart above was used in the analysis.

Price is projected to move in a motive wave and the first wave is still in motion, probably in the final phase i.e the fifth sub-wave.

With price projected to dip to the 70 price region with about 600 pips away and a motive wave, an impulse wave or an ending diagonal.

The video below explained further how price could move.



The second sub-wave of the fifth wave is complete and price is in motion to complete the third wave.

See the chart below

The chart above shows how the third wave of the 5th sub-wave is emerging. A combination of zigzag pattern followed by two different flat patterns shows that the recent intra day bullish drive will soon be exhausted for the bearish trend to continue in journey that could get to 70 price level.

The chart below shows the plan.

Subscribe to our mailing list to send the alert to you.

More info for NzdJpy Would these combined corrective patterns trigger a bearish move ~ latest forex trading signals:

Read more

Usdcad gaining bearish momentum - forex trading fxcm review

Usdcad gaining bearish momentum ~ forex trading fxcm review

My exploits of Usdcad has been very impressive since July this year. Every follower of this blog will admit to the fact that elliot wave system of market analysis is one of the best, if not the best.

You get the grasp of market past, present and future positions at your finger tip. 

You know the position of price at every market move and follow accordingly.

Presently , Usdcad looks so exhausted at the top after an impulsive move from July looks completed and the bears are preparing for a massive correction which could take us to 1.1000 or below. 

A nice momentum move downside will confirm this, anything less could mean the fifth wave is not completed yet.

After the economic data released in the first week of November which connoted that Usd could be getting weakened after a massive rise in few months now. 

The market, of course, reacted and moved downside. A retracement was expected for the second wave of the expected bearish corrective move.

I am already in a sell after my pending sell order was activated at 1.1370 , expecting a ride to 1.1000, while I cash out profits along the way. 

I will keep an update as more price chart confirm this move or invalidate it.

Hope you enjoyed the Elliot wave free week ?

More info for Usdcad gaining bearish momentum ~ forex trading fxcm review:

Read more

Bullish move continuation on Gbpchf - intelligent forex trading reviews

Bullish move continuation on Gbpchf ~ intelligent forex trading reviews

On 2nd October, I pointed to an ending diagonal which signaled a bearish correction  and I was not surprised that price moved just as anticipated. 

I also pointed to the fact that I have a bullish bias. I expect price, after the completion of the present zigzag correction, to rally and break the top of the ending diagonal to complete the impulsive move.

This projected bullish move is also made tradable by  a three daily pin bar drives resting on the near term support zone, the stochastic momentum on D1 and a divergence on the H4 chart.

When we have a clear recognizable pattern with other technical parameters aligned, we can trade with more confidence.

I will expect price to break above the falling wave 4 channel on H4 before buying.

Conversely, if price breaks below the support zone mentioned in high momentum, new analysis has to be done to be sure of what price is playing out

Let me add you to my mailing list.
Mail me @ forexmaster05@yahoo.com
Whatsapp: 2348134820569
Twitter: @Forexelyte

More info for Bullish move continuation on Gbpchf ~ intelligent forex trading reviews:

Read more

Gold A New Triangle - forex trading signals in urdu

Gold A New Triangle ~ forex trading signals in urdu

On 3rd March, we discussed about the triangle that formed the 5th wave of the expected impulse wave that broke out of the ending diagonal. You can read the article again here .

The impulse wave, which was expected to terminate between 1300 and 1400, is expected to be the first leg of a correction.

As price broke out of the 4th wave triangle, we expect price to rally in a real motive wave to the 1300-1400.

 


Presently price is consolidating in a side way movement after a short rally.
The chart below shows the Elliott wave analysis of the breakout rally


Read more

Intraday Analysis Cable to continue the bearish move - free forex trading signals in india

Intraday Analysis Cable to continue the bearish move ~ free forex trading signals in india

Cable is expected to continue the downtrend which is projected to halt at 1.1740.
Price is about completing the 4th wave of the intra day trend and we may see further dip especially if price is contained below 1.4150 resistance.



If price is contained beneath the zone (1.41-1.415) and breaks below 1.404, we may see price dip to 1.372 which is the next projected support level.

More info for Intraday Analysis Cable to continue the bearish move ~ free forex trading signals in india:

Read more