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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Typical Consolidation Pattern - get forex trading signals

Typical Consolidation Pattern ~ get forex trading signals

Consolidation Analysis

Consolidation patterns with three waves/ swings

1 hour  euro us dollar chart analysis

Bull Flag and  Triangle Consolidation Pattern

Yesterday at 12 a.m. GMT, EUR/USD broke through the triangle bottom but did not confirm the breakout of the low and reversed.

The EURO found resistance in the middle of the price zone of the triangle consolidation pattern (red circle above) and the price zone of the tight consolidation. Market price went down again till today at 7 a.m. GMT.

Market bounced from the strong support zone at about 1.2641. From there, the Euro went up to the Pivot point, consolidated there (Bull flag) and broke through.

Todays price action might be seen as an inverted Head and Shoulders pattern where the brown neckline got broken in the European session. Recently a second bull flag was formed and market broke out to the upside.

5 min Typical Consolidation Pattern

Typical Consolidations

On the 5 min chart, we see that the two consolidation pattern formed the typical three waves/ swings consolidation pattern formation before the uptrend continued.

The EUR/USD found resistance at the 100 % fib extension from todays up move from the support level at 1.2641 to the neckline moved to point a at 1.2736, the 61.80 % fib extension (a-b at c) at 1.2736, daily R1 and the 127 % butterfly target (127 % from b-c at c). This confluence resistance zone hold the market (red circle)  and market went down to find some support at the middle of the price level of the prior consolidation pattern at 1.2710.

Timing in Breakout Trading

It is important to recognize when the breakout of the consolidation pattern occurred (Breakout candle 1,2).

Both price breakouts occurred at the beginning of a new 4-hour candle (12 a.m., 4 p.m. GMT). If you

4 hour Breakout Timing

observe the 4 hour chart then you also see that the 10 SMA and the 20 SMA provided resistance.

The EUR/USD respected these level but with the beginning of the new 4 hour candle (12 a.m. and 4 p.m. GMT) these resistance zones got weaker (already touched) and market broke through it right at the beginning of both new 4 hour candles (Breakout Timing).

The second breakout (4.10 p.m. GMT) did not get confirmed as the succeeding  5 min candles did not close above the range of the breakout candle (no confirmation on the 5 min chart after the breakout of the consolidation - green line).

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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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Fibonacci Retracements and Fibonacci Extensions - buy forex trading signals

Fibonacci Retracements and Fibonacci Extensions ~ buy forex trading signals

Important Fibonacci levels

61.80 Fib Retracement | 61.80 % and 100 % Fib Extension levels

Understanding Fibonacci Analysis

The charts below show the importance of the Fibonacci Analysis, which consists of Fibonacci Retracement levels as well as Fibonacci Extension levels.

Fibonacci Retracement levels highlight some important price levels during the retracement of a recent swing, which could lead to some price reaction. The 61.80 % Fibonacci retracement is the most important price retracement level (IMO).

The Fibonacci Extension level is the complete price range of a recent swing moved to the highest retracement level of this recent swing to target important price levels during the next impulsive leg, Hence the Fibonacci Extension levels can be drown when the retracement of the recent impulsive swing has terminated. The deepest price retracement level is the price point where the complete price range of the recent impulsive swing gets plotted on to show hidden Support/ Resistance levels. Important Fibonacci Extension levels are the 61.80 % Extension and the 100 % Extension. A minor Fibonacci Extension level is the 161 % level.

The Fibonacci Retracement gets employed first to find important price retracement levels when a recent swing is getting retraced whereby the Fibonacci Extension gets employed when the retracement terminates and a new impulsive leg starts to find important hidden support/ resistance.


On the 1 hour chart below we see that the 100 % Fibonacci Extension from the first leg down plotted on the beginning of the next leg down marks the price zone, where the EUR/USD found hidden Support after market breached the daily S2 Pivot.

1 hour Fibonacci Extension

On the 5 min chart below the 61.80 % Fibonacci Retracement provided resistance to the price retracement of the larger leg down (blue arrow). Further, the leg down consists of three minor swings/ waves down,  whereby momentum was fading away with every new swing. The retracement of the first leg down started at the daily support level (pink line) after market failed to break the daily S2 Pivot.

5 min Fibonacci Retracement

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Fibonacci levels and Bear Flags - best forex trading signals service

Fibonacci levels and Bear Flags ~ best forex trading signals service

Fibonacci extension levels

Flag patterns

The EUR/USD Chart Analysis

shows the importance of the 61.80 % and 100 % Fibonacci extension levels, which market often respects as support/ resistance, at least temporarily. On the hourly Euro Chart we see that market respected the 61.80 % Fibonacci Extension level at 8 a.m..Market retraced up from this Fibonacci Extension level to the downward sloping 20 SMA (purple line) and the 61.80 % Fibonacci retracement level. From this resistance level, which market approached at 1 p.m., the EUR/USD rolled over and continued its downward trend to the 100 % Fibonacci Extension level. The 61.80 % Fibonacci Extension level often provides only temporary support/ resistance. The 100 % Fibonacci Extension support level got further strengthened due to the weekly S1 at 1.2859.

1 hour Fibonacci extension levels

On the 5 min Chart we see that the EUR/USD consolidated at the uprising trend line and the daily S1, formed a bear flag (Continuation pattern) and market finally broke through the support level of the uprising trend line. Market took out the stops and triggered the limit breakout orders below the recent low (left side of the 5 min chart) and the Euro started to retrace back into the Consolidation zone (Market Price Manipulation) of the prior bear flag, which now acts as resistance (Consolidation price zones). Furthermore, the daily S1 changed its role from support to resistance after the confirmed break of this level on the 5 min chart.

5 min EUR/USD Chart Analysis

Another EUR/USD Chart Analysis in regards of Fibonacci Extension levels and Bear flag pattern:

4 hour Fibonacci Extension

Fibonacci and Bear Flag

continued its down trend today with the triggering of the bear flag pattern. The 10 SMA on the 4 hour chart provided resistance to the Euro and the  EURUSD depreciated further. The Euro found support at the daily S1 and 61.80 % Fibonacci extension (1 hour chart) and market turned around after the creation of the hammer candlestick pattern on the 5 min chart. The EUR/USD moved up to the prior consolidation price zone (bear flag - hourly chart-orange arrow), which acted as resistance.

1 hour Bear Flag pattern, Hammer

5 min Hammer pattern

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UsdCad The Journey So Far And What To Expect - short term forex trading signals

UsdCad The Journey So Far And What To Expect ~ short term forex trading signals

UsdCad was my favourite currency pair. I have traded almost all the patterns in between  for a long time. Its count was so easy for me and at a glance, I saw what price was saying in every move and turn.

At the beginning of this year, I started with a bearish bias though with a long term bullish sentiment. The article was titled UsdCad Analysis for 2015. I forecast a rally in price to 1.35 and above, but after a dip to 1.0 region. 

Below is an excerpt from the article.

"In the long term, this current impulsive move from 2011 is probably part of the ‘C’ leg of the projected zigzag corrective pattern. The ‘C’ leg should take us to 1.35xx and 1.46xx in the years to come, probably a period of 3-4 years"

 

Price since then even rallied further quickly to a long term high in a 5-wave impulsive bullish move which fit a perfect flat formation (weekly chart) as I posted in what was titled Flat formation in Usdcad. I sold at the completion of the flat as I expected a full long term bearish move. Price only dipped for about 900pips before the bullish resurgence.

Price advanced to 1.255 and I labelled it a zigzag correction of the first bearish move which I favoured as an impulsive move though I had a corrective alternative. I chose the impulse because I expected price to react to a larger degree flat pattern..

The advance to 1.255, as a percieved zigzag pattern prompted me to a sell expecting a wave 3 dip which should at least break 1.19 below.

After that discovery, I posted an analysis titled Multi face analysis of Usdcad. 

Below is an excerpt from the analysis.

 

"The long term bullish flat correction which started in 2007 is expected to have ended. The first impulsive wave downside followed by a prospective zigzag corrective wave 2. 

Price is expected to start a new impulsive journey to the downside which is expected to take 1.1920 ( the first wave low) and to 1.1250."

 

Price dipped as expected in a move that was not typical of a wave 3, a zigzag to be precise. The dip ended at 1.21 which was 200pips away from the 1.19 low. Price advanced so fast in the manner of an impulsive move as I watched it broke above the 2015 high at 1.283 and I changed my wave analysis to what I have below.

 

 

 

  So if this is the case, what do we have in the longer term?

The dip from 1.283 to 1.19 was only the 4th wave of the last leg of the longer term (degree) abc correction to complete what pattern?. A zigzag probably.

The chart below shows an emerging long term correction.

 

This zigzag pattern has entered the region of the 4th wave of the impulsive dip from 1.62 to 0.905 ,as shown in the chart above, which is a good region for the completion of a corrective pattern especially a zigzag.

 

I expect price to continue the rally to 1.34 or 1.40-46 in a fifth wave journey after a minor shorter term wave 4 dip. 

 

These projected levels are similar to what I forecast at the beginning of the year as I have posted at the beginning of this article. 

 

What happened between January and July, of course, was a change of pattern which is what we use as elliot wave theorist to understand the behaviour of price.

 

We can follow price actions by analysing with elliot waves theory. 

 

By using elliot wave principles, we can :

1. identify the direction of the dominant trend.

2. identify counter trends.

3. determine the maturity of a trend and a counter trend.

 

As prices develop, we will look for inherent tradable patterns that will build our confidence and apply the right money management rules.

 

Trade with confidence. JOIN AN ELLIOT WAVE MENTORSHIP CLASS and be an elite trader.

 

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Daily Head and Shoulder pattern - hot forex trading signals

Daily Head and Shoulder pattern ~ hot forex trading signals

EURUSD Technical Chart Analysis 

Head and Shoulder Analyzed

Daily Head and shoulder pattern

The daily Head and Shoulder pattern got triggered due to the gap down last week. On Monday, May 7, we had a nice retest of the neckline, which acted as resistance and led to a sharp price drop. The market took out the low of January 23 (stop fishing) and so far respected the support zone (analysed in EUR/USD Market Analysis (14.05.12)).

Neckline break 

Below the market is the weekly trend line (low of June 2010 and January 2012) which could act as support. The classical target of the Head and Shoulder is the length of the head (A-B) projected from the neckline break (1.3061) at about 1.2551, which would also clear out the striking low from January at 1.2624.
However, it is to early to make  these assumptions and further price action will give hints of what to expect.

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Head and Shoulders pattern and Neckline - forex trading signals blog

Head and Shoulders pattern and Neckline ~ forex trading signals blog

Chart Pattern targets

Neckline of the Head and Shoulders 

Euro US Dollar

triggered the Head and Shoulders pattern with the break of the neckline and the Euro moved lower to the Head and Shoulders target, which is marked on the chart with the 100 % Head and Shoulders target. From there, the market retraced back up to the Head and Shoulders neckline and formed a kind of Wedge pattern / Three Drives pattern before the EURUSD reversed and moved down again (right side of the chart).

Overall, the two hammer candle stick pattern (right side of the hourly chart) and the 61.80 % as well as the 100 % Fibonacci extension levels on the 5 min chart helped us in predicting support and resistance zones.

The first hammer candle  occurred at the consolidation price zone of the prior flat "overnight" consolidation pattern of the 21th of October, which acted now as support. The price up moves after the first and the second hammer candlestick created the kind of Wedge/ Three-Drives pattern and market reversed to the downside after the Euro touched the brown neckline of the Head and Shoulders  at around 1.3080.

As often, market penetrated an important Chart level like the neckline and the high of the recent overnight consolidation zone of the 19th of October to clear the stop orders and trigger the limit breakout orders before reversing strongly (False Breakouts - Market Manipulation).

1 hour Head and Shoulders pattern, Fibonacci target

The Wedge / Three-Drives Pattern is better visible on the 5 min chart. Furthermore, we had two Head and Shoulders pattern on the 5 min chart, see the red lines marking the Head and Shoulders pattern. Both patterns worked out relatively well.

The useful Fibonacci extension levels (61.80 and 100 %) are also visible on the 5 min chart below.

5 min Head and Shoulders pattern and Wedge

See also Chart Pattern Manipulation to understand that famous chart patterns are tricky.

The Technical Chart Analysis of the trading days before below

The EURO

found support at the Head and Shoulder price target (100 % fib extension of the Head and Shoulders  height moved to the neckline break), daily S2 and 100 % Fibonacci swing projection. Pivot Points and Fibonacci extension levels only held the market temporarily. The red ellipses underlined the Breakout Timing Strategy (Break of support of the new hourly candle after previous hourly candle closed bearish at the support level).

1 hour Head and Shoulders pattern target

5 min Three Drives pattern

The Developing of the Head and Shoulders pattern

Head and Shoulders neckline and Fibonacci Analysis

on hourly chart but neckline and daily S1 held the market so far. The Euro found resistance at the weekly S2.

In todays session the Euro often found resistance and support at 61.80 % and 100 % Fibonacci extension levels and market often cleared the stops (stop fishing - false breakout) below recent lows (see red arrows on 5 min chart).


The Fibonacci Extension and Retracement levels as well as the Pivot Points revealed important Support and Resistance zones (5 min chart analysis)

1 hour  Head and Shoulders neckline

1 min  Head and Shoulders pattern

5 min Fibonacci levels 

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False and True Breakout Patterns - forex gold trading signals

False and True Breakout Patterns ~ forex gold trading signals

Euro Dollar Breakout

False and True Breakout Patterns

On the weekly time frame we see that EUR/USD closed right at the weekly trend line (respected it). However, it is unclear how strong the support from the weekly trend line (low from June 2010 and January 2012) will be during the next weeks.

Weekly Support Resistance trading

Timing of the Breakout

On the 4 hour chart EUR/USD strongly bounced back from the support zone at 1.2641 and in the following EUR/USD moved up to each resistance level (EUR/USD Market Update 18.05.12), touched it (respected it) and broke each resistance level in the beginning of the succeeding 4-hour candle (Timing) (see also 5 min chart below).

Finally, EUR/USD moved up to the weekly trend line (orange line) and found resistance there, also due to the 61.80 % fib retracement of the recent swing down at about 1.2783, daily R2 and the 100 % fib extension from the recent swing up from 1.2641 to b at c at about 1.2790 (see 5 min chart).

4 hour chart V shape turn around Trading pattern

Breakout candle

On the 5 min chart, we see that all three breakout candles occurred in the beginning of the succeeding 4 hour candle (12, 4 p.m. 8 p.m. Timing) after each prior 4 hour candle touched the resistance level. The breakout of the breakout candle 2 did not get confirmed on the 5 min chart  so that in the following price moved back in the consolidation. Another nice three wave consolidation took place before the next breakout occurred. Finally, EUR/USD closed around the weekly trend line.

5 min false and true breakout chart analysis

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Ending diagonal pattern - forex gold trading signals free

Ending diagonal pattern ~ forex gold trading signals free

Fibonacci Chart Patterns

Fibonacci extension level

4 hour Fibonacci extension levels

On the 4 hour chart (left) we see that the 100 % fib extension from A-B at C and the weekly S2 provided support and the Euro returned sharply from this level.

The hourly chart below shows that the Euro formed an ending diagonal (wave C-D) after the termination of the impulsive A-B wave plus the succeeding correction wave up to point C.

The last wave of the ending diagonal (e) penetrated the weekly S2 and the 100 % fib extension (red line) (no confirmation) before the Euro turned around sharply and immediately moved up to the initial price target at point C-blue line (beginning of the ending diagonal).

1 hour Elliott wave theory, ending diagonal pattern

5 min Ending diagonal pattern

100 % fib extension

On the 5 min chart we see that the Euro moved up sharply after reaching the support zone at the 100 % fib extension (red line) and that market ignored all resistance levels in between to move directly to the initial price target (beginning of the diagonal). This price behaviour is typical after a pattern terminated, particularly an ending diagonal (directional move). In the following market found support at the 100 % fib extension of A-B at C and resistance at the 100 % fib extension of D-E at F plus the weekly S1.

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UsdCad To Take A Rest - the best forex trading signals

UsdCad To Take A Rest ~ the best forex trading signals

On 31st May, there was analysis here titled Multi Face Analysis of the Usdcad. 

After the analysis, I put a sell order. 

 

I was so sure that I was selling after the completion of a long term flat formation on the weekly chart which was confirmed by the 5-wave impulsive move. 

Price was expected to break below 1.90 in a motive mood.

Price did react and fell, hit my first target at 250pips, then rallied and took 1.23 up in an impulsive manner. 

After looking at the preceding dip from 1.256 to 1.212 and saw how fast the advance was, i quickly exit my second position at a profit of 60 pips. 

The dip was zigzag correction. I didnt trade it because it doesnt tick all my boxes. I only used it as a precautionary measure to close a winning position before running to loss.

 

 Elliot wave theory helps to maintain a winning edge by giving us a clue on how price should response to every pattern it forms, not in a perfect way.

The advance from 1.2125 was an impulsive move with the third wave breaking above 1.28 resistance for more movement upward to 1.316.

 

The third wave is a textbook 5-wave pattern to which price is expected to react, if the support neckline of the terminating upward congestion is broken downside, and dip to 1.28 support in a congestion manner (probably a triangle) typically seen wave 4. 

 

A rally is now expected to terminate the whole upward move after which one can be expected to trade end of 5th wave reversal.

Wave 4 dip is expected to be limited at 1.265 or above 1.256. Any dip below 1.256 could spell bearish resumption.

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Pattern Trading on AudNzd - understanding forex trading signals

Pattern Trading on AudNzd ~ understanding forex trading signals

One of my favourite elliot wave patterns is a well formed 5-wave impulsive move. 

 

A non-overlapping 5-wave decline or advance as discussed by elliot wave theory is my bread and butter. 

 

 

 

The chart above was posted when I saw this pattern emerging on AudNzd on 22nd June in the article titled Audnzd Update. 

 

After the completion of this pattern, a correction was expected. It was not surprising as price dipped fast.

The fifth wave of this pattern also formed a 5-wave pattern which allowed me to put a sell entry at 1.1325 with stop loss of 120 pips. 

 

It was a very sweet trade and I closed my position making 300pips as a correction is expected upside.

 

 

It was a perfect textbook pattern which doesnt happen all the time. It is a high probability trade, not a perfect one. 

 

It is one of the three patterns I intend to share with the participants of my 6-weeks intensive online mentorship course.

 

Book a space today. 

 

Cost: #10000 or $70 

 

Call or send sms to me on +2348134820569 or mail me @ forexmaster05@yahoo.com 

Note: Only serious and interested people should contact me.

 

If you reside in portharcourt and its environ, you can book a one-on-one training with me.

Another pattern that will be taught was seen on Euraud. It was another textbook pattern . Read it above.

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Butterfly pattern and price targets - barclays forex trading signals

Butterfly pattern and price targets ~ barclays forex trading signals

Butterfly Sell pattern

Weekly and Daily Pivot

The Euro

formed a butterfly sell pattern on the 5 min chart. The turn around at the 127 % butterfly sell target coincided with the 61.80 % fib retracement on the hourly chart and the weekly R1. We also see the importance of pivot points for example of the weekly and daily pivot and daily S1 and weekly R1.

Market initially moved down at 8 a.m. to find support at the weekly Pivot Point. From the weekly Pivot the Euro bounced up strongly, creating a small bull flag at around 8:45 a.m.and later the Butterfly sell pattern. 

The Butterfly pattern is a typical reversal chart pattern so that market typical retraces the preceding move after the failed breakout to the 127 % or 161 % Fibonacci extension level from the preceding Consolidation pattern at 10 a.m.. The Euro retraced back to the typical 161 % Butterfly price target, which also coincided with the 61.80 % Fibonacci retracement level of the recent swing up at around 1 p.m.at 1.29. 

The Euro consolidated above the 1.29 price level with the typical three swing consolidation before breaking temporarily through the 1.29 level (psychological level). Later in the US session the Euro has been in a choppy trading environment with the daily Pivot as the upper border and the 1.29 price level as the lower border.

5 min Butterfly Sell Pattern, Butterfly Price Target

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Market Manipulators cleared the stops - best forex day trading signals

Market Manipulators cleared the stops ~ best forex day trading signals

Taking out Stop orders

Hammer Candle Pattern

The Euro

1-hour Clearing of  Stop Orders by Manipulators

gaped down to the monthly S2 Pivot in the Asian session and from there the Euro retraced up to the hourly 10 SMA.

The following downward swing terminated at 8:55 a.m. GMT at 1.2082 with the creation of a hammer candle pattern/ price rejection (5 min chart red ellipse).

The Euro moved up and slightly penetrated the recent high to reach 1.2139 (green line) before marked rolled over and then penetrated the recent low at 1.2082 (blue line). This price action was purely Stop Running. The Market Manipulators cleared the stops at the recent Highs and Lows (no confirmation on 5 min chart).

The relatively long 1 min breakout candle at 1:42 p.m. (not shown) suggests the clearing of many stop and pending limit orders. Market did not close below the recent low (1.2082-blue line) on the hourly chart. The clearing of the stops on both sides (low/ high) sometimes precedes larger moves as the mainstream traders are already stopped out or fooled into the wrong market direction.

In the US Session, the EURUSD Manipulators also cleared the stops above the new high with a slight breach of this level after market already took out the stop market orders at the low of todays market range.

The red ellipses on the hourly chart shows Breakout timing setups at 7 a.m. and 1 p.m.. The Euro closed at the monthly S2 (respecting support) and market moved below it with the beginning of the new hourly candle (Termination of the bear flag/ consolidation at 7 a.m..).

We will see whether the gap opening at 1.2156 (brown line) will be closed soon.

5 min Candle Pattern Hammer | Stop Running

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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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How To Exit A Trade With A Pattern - top forex trading signals

How To Exit A Trade With A Pattern ~ top forex trading signals

AudJpy was one of the markets doomed for a sell off after an analysis, based on elliot wave theory, that Japanese Yen was expected to strenghten across board, which means that Yen pairs were expected to fall.. 

Yen Pairs fell sharply days after the forecast.

 

AudJpys decline from 97.399 was expected to be in 5 waves trendy move. 

 Wave 3 of this impulsive move tend to be in progress after the completion of the first two waves.

 

 

 

 The 4th wave of this 3rd wave was clearly corrective. 

It was a double zigzag corrective pattern. Double zigzag is one of the corrective patterns I trade.

 The ending formation of this zigzag looked terminating. 

I put a sell order at the break of the supporting trendline at 91.69 risking 89 pips at 92.586. 

The final target was below 89.12. I expected price to move sharply downward. 

 

 

 

 

 

Price responded to the break and after many hours, formed the chart below

 

 

Price reaction to the end of a zigzag should be motive in nature. Price went sideway instead and completed a triangle. At the break of the triangle, I exited the trade totally with a loss of 15pips instead of 89 pips, that was a great loss cut.

If the above wave count will be validated by price, it should soar higher to complete a deeper correction before the bearishness starts.

If price likewise falls in the region of the triangle and break it below in what may look like the completion in a motive mood, my first analysis will hold and I will have missed a good profit.

The triangle formation is an anomaly and one should not trade with a mixed feeling.

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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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Fibonacci and Pivot Analysis - forex black box trading signals

Fibonacci and Pivot Analysis ~ forex black box trading signals

Consolidation and Continuation Chart pattern

Fibonacci Retracement and Extension

The two green ellipses are consolidation pattern, which acted as continuation chart patterns - Flag and pennants. The consolidation price zone of the first Consolidation/ Continuation Chart pattern (green circle) acted as support as market price tested this price zone of 1.2460 again. This support zone got strengthened through the 61.80 % Fibonacci Extension level of the recent swing and the 61.80 % Fibonacci retracement level.

The Euro moved up to the price zone of the black circled Consolidation pattern, which looks similar to a small Head and Shoulders pattern (H&S). As often, the first retrace into a price zone of a prior consolidation held the first test and the EUR/USD moved strongly down again to the daily support level (pink line). The Euro consolidated for a while after hitting the daily support before the second strong leg down moved price to the Daily Pivot Support. From there, the EUR/USD bounced strongly up above the recent daily high to clear some stops and fool some breakout trader.

The failed first breakout often occurs due clear the stops and fool some breakout traders at striking chart levels like market highs and lows. This manipulative triggering of market orders is also visible on the further price action on the chart, whereby the weekly R2 held the market drop in the beginning of the US trading session.

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5 min EURO USD Pivot Points and Fibonacci

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Triangle Pattern - forex live trading signals free

Triangle Pattern ~ forex live trading signals free

Consolidation Price Zones

Triangle Chart pattern

4 hour Consolidation Price Zone

Price Breakout

The Euro broke through the daily low of May 25th (pink line) and market found some resistance in the price zone of the prior consolidation (red circle) and the gap (brown lines) at about 1.2543. From there, the Euro returned sharply and found some support at the 20 SMA on the 4-hour chart, the consolidation (blue circle on 4-hour and red triangle on hourly chart) and daily S1 at about 1.2410.

The Euro moved up a bit to the daily pivot (1.2467) where price found resistance whereby the weekly pivot (1.2444) provided support and resistance depending on price action on the 5 min chart (not shown).

The 1 hour chart below shows yesterdays consolidation (red triangle), which gave some support in todays trading session.

1 hour Triangle Consolidation pattern

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Technical Pattern Gartley - forex buy and sell trading signals set and forget

Technical Pattern Gartley ~ forex buy and sell trading signals set and forget

EURO /USD Chart Reading

Trading the Gartley pattern

The Euro found support at the 100 % Fibonacci Extension Cluster/ Gartley pattern projection yesterday and moved up from the target of the Gartley Pattern to the daily 10 SMA. From there, market moved lower with strong bearish momentum and created a new daily low.

On the 4 hour chart the EUR/USD continued its downward trend with the beginning of the new 4-hour candle at 12 a.m. after the previous candle closed at the 10 and 20 SMA Support level (Breakout Timing).
 The Euro found support at the daily S2 after clearing the stops below the important low of September the 10th (thick orange line). However, so far market did not close below this daily support (see hourly chart).

Gartley Techncial Chart pattern

4 hour Euro 100 % Fibonacci Extension

1 hour Euro Dollar Technical Chart Analysis

Technical Chart Analysis of the day before

The Gartley chart pattern

played out well. Currently, the EUR/USD is holding at the Fibonacci Support zone, which consists of the two 100 % Fibonacci Extension levels. Furthermore, this support zone coincides with the Daily S1 and the consolidation price zone of the prior consolidation pattern on the left side of the Euro US Dollar Chart. We also had a nice Doji Candlestick chart pattern on the EUR USD.
The red circles on the daily Euro chart mark some Breakout Timing Strategy, whereby market closed at the support level with a bearish candlestick (20 SMA and daily support level) and breached support with the new daily candle.

Gartley Chart Pattern, Doji, Breakout Trading Strategy

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