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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Trendline break - free forex trading signals sms

Trendline break ~ free forex trading signals sms

Trendline Break Confirmation

Understanding price Breakouts

Daily 10 Moving Average SMA

On the daily chart (left) we see that EUR/USD found resistance at the 10 SMA and monthly S2 so that in the following price dropped down.

1 hour Technical Chart Analysis Forex

SMA Trading

On the hourly chart analysis above we see that the 200 SMA also provided resistance in the same area like the daily 10 SMA. EUR/USD only made a slightly higher high yesterday at about 1.2825 (stop fishing) whereby the 5 min  breakout candle at 8.50 p.m. did not get confirmed due to the missing close of the succeeding 5 min candles above the high of the breakout candle (not shown).

EUR/USD dropped down from this high (point A) and found temporary support at the 20 SMA (purple line) and the prior consolidation price zone at point B. In the European session market broke through the 20 SMA and touched/ respected the red trendline with the 9 a.m..hourly candle (red circle). With the beginning of the next hourly candle (10 a.m.) market immediately broke through the now weaker (after the hourly touch-Timing) trendline-support at 10 a.m. after the small consolidation (see 5 min chart analysis) finished with the start of the new hourly candle (10 a.m.).

In the following, EUR/USD formed  a 3-wave consolidation (green circle on hourly chart analysis) at the 20 SMA on the 4-hour chart (not shown), daily S1 and the 161% fib extension from A-B at C (hourly) at about 1.2739 and the 61.80 % fib extension from A-B at C (5 min chart analysis) before price broke through it with the developing of the new 4 hour candle at 4.p.m (not shown). EUR/USD went down to the next support level at the 61 % fib retracement at 1.2712 and the 100 % fib extension from C-D at E (hourly chart analysis) where price currently consolidates.

5 min technical chart analysis forex euro

 3-wave consolidation

On the 5 min chart analysis above we see that the recent 3-wave consolidation (DEF) (green circle on the hourly) formed a lower low (E) and  a higher high (F) in the consolidation. This kind of consolidation pattern is very often followed by a strong wave in the trend direction (down) as many breakout-traders got trapped (E, F) in the wrong direction, which often fuels the momentum. The small bear flag on the right of the 5 min chart analysis was the respecting of the green trendline in particular and the consolidation (circled) between 2 p.m. and 3 p.m. before price resumes the downward trend.
The breakout candle 1 at 1 p.m.breached again the weekly pivot point but  the breakout did not get confirmed on the 5 min chart (point D)


Update: The recent downward move started at 8 p.m. after the 61.80 % fib retracement at 1.2712 was respected by the 4-hour candle opening at 4 p.m.. With the beginning of the new 4-hour candle (opening at 8 p.m.) the underlying support zone got weaker (61.80 % fib retracement got already touched) and price broke through it after a nice 3-wave consolidation on the 5 min chart between 7 p.m. and 8 p.m. just before the 8 p.m. 4-hour candle opened..

Trendline break on the 16th of October

EUR/USD confirmed the break of the hourly trendline

The Euro confirmed the break of the hourly resistance at 1.2991 (blue line) and the daily R1 with the beginning of the new hourly/ 4-hour candle at 8 a.m. (Timing Setup). The 100 % Fibonacci extension from the recent swing up (11 - 12th of October) moved to the daily low of October 15th (Yesterday) provided resistance so far at around 1.3057.

The 1 hour Euro Chart analysis below also shows a Butterfly sell pattern, important Fibonacci support and Fibonacci resistance at the 61.80 % and 100 % level.

1 hour Trendline break confirmation

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Short Term Analysis of Cable - fx today's forex trading signals

Short Term Analysis of Cable ~ fx today's forex trading signals

After a long move downside over a long period of time, Cable finally reversed at 1.455 and we are getting close to know how the resultant bullish move could turn to play out. 

Viewing the bullish move through elliot wave binoculars, its clear that the long term bearish move might not have concluded. What the chart is showing us presently is that price is correcting.

What pattern of correction?. We get the answer from elliot wave.

Many elliot wave analysts will definitely have different view on the counts, but what I see from my angle here is correction. The correction might not be over though as price can still proceed the bullish movement.

The first bullish move from 1.455 was clearly a 5-wave impulsive move. Price corrected in a zigzag pattern to 1.51. The continuation of the bullish move followed to 1.59 in a movement one might  think would be a motive move, but was a corrective zigzag. 

When we see consecutive zigzag patterns in a particular trend, high possibilities are there that its a corrective move of the larger trend.

The pattern forming in advance counld be a RUNNING FLAT , a 3,3,5 corrective pattern. The prospective Flat started at 1.58 and could end at 1.51 or 1.49 regions. We are in the last leg of this pattern in a clearly forming 5-wave impulsive dip. cable is expected to dip to this region where we can set to look for a trading opportunity.

 

 

 

 

Of course, price can move in many other ways. 

The way I analysed is just one of them. I always like making a way I expect the price of any market to move. If it doesnt move that way, I think of another. 

But my way of thinking is directed toward the completion of an elliot wave pattern. 

Why wont I when its such reliable?

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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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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.

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Gbpchf 2 Emerging Patterns To Consider A Short - learn forex trading signals

Gbpchf 2 Emerging Patterns To Consider A Short ~ learn forex trading signals

After the 5-Wave decline that broke out of the long term ending diagonal, we saw a shallow retracement which was resisted by the 4th wave of the 5-Wave drive at 1.4750.

Price dipped in a lower degree 5-wave impulse and has been congesting since 9th February.

If price does not dip below 1.3890, we might see a further intra day rally to 1.4310-1.4320 before the bearish trend resumes.

We have two projected scenarios in place; any of which,if satisfied, will make us look for a selling opportunity signal.

Scenario 1

Scenario 2

Watch the video below.

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Flag patterns Pennants Ledges - download forex signals auto trading ea

Flag patterns Pennants Ledges ~ download forex signals auto trading ea

Continuation Trading Chart Patterns

Trading Flag patterns, Pennants and Ledges

EUR/USD

4 hour  Chart Pattern/ Analysis

 continued its downtrend today in the beginning of the European trading session with the triggering of the Head and Shoulders pattern on the 5 min chart, which occurred at the daily R1 and the 20 SMA on the 4 hour chart after clearing the stops above the consolidation high.

On the 5 min chart we see many Continuation chart patterns (Flag patterns, Pennants, Ledges - see green circles), which got triggered and market resumed its downward trend. Very often the EUR/USD made attempts to renew its downtrend with the beginning of the new trading hour for a true or false break of support, frequently after closing at support level  e.g. 8 a.m., 9 a.m. 11 a.m. 1 p.m. and vise versa for the uptrend at 3 p.m. and 5 p.m. (see red circles on hourly chart - Breakout Timing).
The Consolidation pattern between 11 a.m. and 12:20 p.m. GMT can be seen as a bear flag of the recent impulsive downward move from 10 a.m. to 11 a.m. (5 min chart).

The daily Pivot point changed its role from support to resistance after the break of this level 8:45 a.m. (see 5 min chart).

The Euro found some support at the Fibonacci Cluster at around 1.2692, the 61.80 % Fibonacci Extension of the recent 4-hour swing down and the 100 % Fibonacci Extension level on the 5 min chart. From there, market leveled off.

1 hour Continuation Chart Patterns Analysis

5 min Continuation Chart Patterns (Flag patterns, Pennants, Ledges)

 

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Daily EURO Support Resistance levels - most accurate forex trading signals

Daily EURO Support Resistance levels ~ most accurate forex trading signals

Support and Resistance

EUR USD Technical Chart Analysis

The EURO started to move upward today, after yesterdays news shakeout at 7 p.m. GMT, which cleared the stops above the low of Sept. 10th at 1.2755 and then reversed to clear the stops below 1.2724. 

Todays upward momentum might be the following of the daily hammer candlestick pattern on Tuesday.


The Euro moved higher with the triggering of continuation patterns (green circles/ellipses) and Breakout timing setups (red circles/ellipses) until market reached strong resistance at the 1.28 level. This resistance zone consists of the low of October 1st, the monthly S1, the 61.80 % Fibonacci retracement on the 4 hour chart and the 38,20 % Fibonacci retracement on the daily chart. Market reversed at the 1.28 level and started to move lower.

On the 5 min chart we see how market broke through the downward sloping green trend line at 2:15 p.m. (Breakout trading-prior candle closed at trend line) so that the consolidation/ triangle got terminated.  Market started to consolidate in a  shape of a continuation pattern after the breakout of the triangle and price retested the daily R1, the high and the downward sloping trend line of the consolidation (resistance becomes support-successful retest). The Euro terminated the continuation pattern on the 5 min chart and market broke through yesterdays high with the beginning of the new hourly candle after the previous one closed strongly at resistance (yesterdays high-Breakout trading).

Recent main support and resistance levels have been the low of October 1st and September 10th and the high of last Tuesday. Yesterdays high (news spike) is also likely to play an important S/R role.

Daily Support and Resistance EURO Fibonacci retracement

4 hour Daily EURO Fibonacci retracement, Resistance Levels

hourly EURO Support/ Resistance

5 min Support and Resistance

The Chart Analysis of the trading days before


On the daily chart (first chart) we see that the EUR/USD created a hammer candlestick pattern yesterday. Market moved higher and the Euro is currently trading at the low of September 10th at 1.2755 (pink line) and the daily 10 SMA. Slightly above is the hourly 200 SMA, the weekly Pivot point and the daily R2.

Yesterdays high at 1.2729 (thick blue line below) initially acted as resistance but after the level got broken the blue line acted as support and market bounced back from yesterdays high (successful retest, changing role of daily S/R levels). The rising 20 SMA on the hourly chart also provided support at 7 a.m. together with the consolidation price zone (green ellipse, orange arrow) and again at 4 p.m..

1 hour  Hammer Chart Pattern | Daily S/R | SMA

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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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Candlestick Patterns Hammer - 100 accurate forex trading signals

Candlestick Patterns Hammer ~ 100 accurate forex trading signals

Price Reversal

Hammer Candlestick

1 hour Candlestick Patterns Hammer, Price Reversal

Candlestick Chart pattern

The Euro had a relatively quite session again today. Market price broke out of yesterdays consolidation pattern with the beginning of the new daily candle (Breakout trading) and the Euro made a new daily low but market hold at the daily S2 support.

At 10 a.m. the Euro created a hammer candlestick pattern and EUR/USD market price started to move upwards.

The three consecutive lows from 4 a.m. to 10 a.m. might be seen as a Three Drives pattern. Interestingly, the Euro always closed above the daily S2. The three consecutive lows tempered many breakout traders to go short following the breakout of yesterdays consolidation pattern.

These false breakouts caught many traders in the wrong position which often leads to a price reversal. The hammer pattern (Price rejection) initiated this price reversal and the EUR/USD moved back into yesterdays consolidation pattern. Yesterdays consolidation price zones acted as resistance as price approached this level again and the Euro reversed back down.

The 5 min EUR/USD chart shows some Fibonacci levels which could helped the trader to find entry and exit points. The red arrows show some false breakouts, which occurred today.

The 5 min chart also shows that we did not have a confirmed breakout through the daily S2. See Unconfirmed Breakout Candle

5 min EUR/USD Chart Pattern

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Flag Patterns Pivots and SMA - real time forex trading signals free

Flag Patterns Pivots and SMA ~ real time forex trading signals free

Chart Analysis of the Euro

Daily Pivot Point

1 hour Fib Extension

Price Zone of the Consolidation pattern

 Today in the Asian session EUR/USD went lower but market found support at the gap close from the trading day before at 1.2518 and the tight price zone of the consolidation pattern at this price level (Z).  The Euro moved up from this support price level (C) and penetrated the daily pivot point (1.2563) (D) but found resistance in the price zone of yesterdays consolidation pattern (B). Since then EUR/USD is trading lower.

5 min Euro us dollar chart analysis

Bull flag

 On the 5 min chart we see that yesterdays consolidation price zone at about 1.2540 (1) provided some resistance (2) before market went up further. The daily low from May 23 at 1.2545 (red line) still seems to have some impact (red circles). Market consolidated (3) (Bull flag) and closed (7 a.m. hourly candle) at the red line before market broke out of the bull flag initially at the beginning of the new hourly candle at 8 a.m.(breakout candle).

The breakout candle respected (closed at) the daily pivot point, consolidated there (4) and broke through it triggered by the increasing 10 SMA on the 5 min chart. However, the breakout of the following small bull flag (5) just above the pivot point only reached the 61.80 % fib extension (a-b at c) (rejection) and the Euro turned around. Market price respected and then moved below the 10 and 20 SMA on the 5 min chart.

The EUR/USD market traded in a tight 20 pip range between 11 a.m. and 1 p.m. capped by the 200 SMA before market created a typicalthree swing consolidation pattern (ABC), which also can be regarded as a bull flag from the previous swing down (hourly chart) (the first swing/ wave (A) in the consolidation terminated at the 61.80 % fib retracement; the second wave (B) at the 61.80 % Fib extension from the previous swing down at A).

After the three swing consolidation pattern terminated (C) market broke down strongly (high momentum) and market took out the previous lows, particularly the recent low from 25th of May at 1.2496 (blue line). Market only initially respected the support zone of the daily S1, low from 25th of May and the 100 % fib extension (4:35 p.m.) before the Euro moved down further to find some support at the daily S2 pivot, the hourly 100 % fib extension (A-C at D) and the 161 % fib extension on the 5 min chart.

10 and 20 SMA

During the strong move down (5 min SMAs were far away from price) the 10 and 20 SMAs on the 1 min chart (not shown) seem to become the trigger signals, e.g. at 4:41 p.m. (6), as long as the momentum stayed strong and market did not reject the decreasing SMAs on the lower time frame-1 min-.

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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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Flag patterns - honest forex trading signals

Flag patterns ~ honest forex trading signals

Bull and Bear Flags

Trading the Flag patterns

Daily Euro US Dollar Forex Market Update

At the daily chart we had a small consolidation last week (circled) at the 1.2931 support level created by the daily low from January 25 and the gap from January 23.

4 hour Euro US Dollar Forex Market Updates

Oh the 4 hour chart we see that the daily support and the 61.80 % fib extension from the A-B wave moved to the C wave at 1.2928 held the market last week (no confirmed break of the the support). However, price also could not bounce back so that the bear flag got triggered due to this weeks gap down. In the following, price held at the 61.80 % fib extension from wave C-D moved to point E at 1.2884 in the Asian session today.

1 hour Bear flag trading pattern

As seen on the 1 hour chart, the 100 % fib extension of wave a-b moved to point c at about 1.2882 strengthened this support area. Market consolidated there but could not bounce back so that  the following bear flag was created, and price broke down in the European session to the 1.2825 support level created by Weekly S1, Monthly S2 + the 100 % fib extension at point a (or point E on 4 hour chart) at 1.2825 and the most recent fib extension of wave c-d moved to point e at 1.2819. Market seems now to consolidate at this support level.


Note:

Bear/Bull flags show that the market is unable to bounce back from the support/ resistance level and erode these levels over time till the market stops consolidating and continues the trend (level can not be held any more after accumulation/ distribution is over).

In a strong trend the bull/ bear flags can repeat over and over till a rejection of the breakout occurs (price moves back into the consolidation) or the the bull/ bear flag fails (breakout of the consolidation is to the other side. Then, a turn around or larger consolidation could follow

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How To Trade Elliot Wave Patterns - upshot forex trading signals

How To Trade Elliot Wave Patterns ~ upshot forex trading signals

Elliot wave theory has proved time and time again how effective it could be in determining market direction. 

 

Not only does it have high confident trading patterns to watch out for in any time frame and any market, but does have the ability to forecast market movement.... every bit of it!.

From the super fast tick chart to monthly time frame chart, its effectiveness is superb. 

As for the elliot wave counting and analysis,a chart can be analysed by 10 analysts and all having different counting . 

Until patterns are completed, counting is usually controversial.

 

I have seen some fellow elliot wave students who, after seeing how I labelled my charts and analyzed, showed me something different. 

 

They get confused and perhaps scared that their counts may be wrong after all. I always told them until a pattern is completed, the counts are adjustible and no correct count is tradable until price confirmation. 

So how does price confirms wave counts? It does in PATTERNS. 

 

Elliot wave patterns confirmed by some technical tools are very profitable. They are  not perfect though. 

Time spent on sieving out these patterns is worth it.

  In any time frames or markets; once spotted and confirmed by few technical tools, are very powerful and profitable. Their profitability is highly probable.

 

One of the reasons for the failure of an elliot wave trader can be traced to trading the wave count instead of the patterns.

So it is important to trade the patterns and not the wave count. Price responds to patterns and not the count. 

 

Infact, often times, when the pattern formed is against the wave count in a particular direction; price is speaking to us to analyse the count in an alternative way.

Let me give an example to nail my point.

On 23rd June, I posted an analysis here. 

Before that time, I have made known how I had a short term bullish bias on Eurusd, after reading from the charts with the help of elliot wave theory that the bullish movement that started in mid-march is corrective in nature.

 I saw a double zigzag in advance.

 

Price rallied from leg X of the prospective double zig zag pattern after a zigzag dip from W to complete the first leg of Y.

 After few days, price went into congestion and form a typical triangle pattern.

Prior to all these, I was already in a bullish position after the completion of a zigzag pattern at X. 

At the break above the triangle, I closed 50% of my position and added another 50% to take to 1.175 and put the two stop loss at the base of the triangle. 

 

After that action, I posted an analysis here titled Intraday triangle in eurusd . An intra day triangle pattern as shown below.

 

 

 

 Price continued to consolidate and later moved in a way that is not typical of a triangle pattern breakout (price has a way it reacts before and after the completion of a pattern). 

 

After some time, price invalidates the triangle by forming a new pattern. The ending diagonal!. 

 

When I saw this pattern, I closed all my positions in good profits, though final target was far from being reached.

I did a new analysis and I shared here. The title was Eurusd in a bearish net. 

For this, I also had an alternative double zig zag pattern which is a corrective pattern. 

 

The pointer is bearish and I entered a bearish position against my elliot wave count   (the expected double zigzag) which I closed at 350 pips risking 125pips.

I closed this trade because of the long term circumstance surrounding the pattern I traded.

If the pattern was a diagonal, the bearish trend could set to resume, but if it was a double zigzag, the bullish move is meant to continue. 

 

Diagonals signal change in trend or an imminent correction. Zigzag patterns appear in the middle of the trend and signal trend continuation.

The chart below was the one I posted.

 

 

 While many were reading about how Greek bailout went in europe, elliot wave traders were reading traders psychological response to the event as shown by price in patterns. 

During the period, I have raked in 650pips. Not bad.

 

Its very easy to manage trades from execution to exit. Thats what makes elliot wave a complete methodology. 

Though reading waves in charts are very profitable, elliot wave traders should always trade patterns formed.

To be successful as an elliot wave trader, one should note the following.

1. Know the basic tenets of elliot waves. They are not difficult.

2. Understand the formation of elliot wave patterns and their specific behaviours. (There are 11 patterns)

3. Know how to confirm the patterns with other technical tools.

4. Trade the patterns you understand most.

5.Understand how price reacts to a pattern after completion. This is to avoid pattern roll over. 

Pattern roll over is my special term for a situation where a pattern, instead of fulfilling its potential, turns to another pattern i.e when a pattern spotted is not real but part of a larger frame pattern or wave count.

 I usually exit my position when I discover this and watch what forms next.

Elliot wave pattern is not the holy grail but, if well used, is profitable.

You can learn how to identify these patterns by picking up books on elliot waves.

 

 

                                                  OR 

 

 ENROL FOR MY 6 WEEKS ELLIOT WAVE MENTORSHIP PROGRAMME starting on MONDAY 20th JULY to FRIDAY 28th AUGUST, 2015.

                                       WHAT YOU WILL LEARN.

 

1. The basic tenets of elliot waves theory.

2. How to spot my three favourite elliot wave patterns. These patterns have made me feel very comfortable while trading. They are just very reliable.

3. How to confirm with simple technical tools. 

These technical tools can even be adopted as a system. Many people I shared with went on to neglect the patterns and focus on this technical tools. 

When combined together with these patterns, you can trade with confidence.

4. Specific entry level for each pattern. You will not pick tops or bottoms, but learn specific levels to enter the market.

5. I will not bore you will too much of elliot wave stuffs, we will only discuss the formation and geometry of these patterns on any time frame and any market. No boring wave count.

6. You will learn how to manage your trade by understanding how price responds to each pattern.

7. You will learn how to spot profit taking levels.

8. You will learn when to run with your profits and cut down your loss.

9. You will learn how to use a simple money management model to take sequential profits and run with highly profitable trades just like I am doing with CadJpy now.

HOW DO WE INTEND TO ACHIEVE THESE?

1. You will receive some of my elliot wave materials for general reading.

2. Lessons will be delivered each day (pdf) for you to download and read.

   First week :     General elliot waves studies

   Second week:   First pattern discussed 

   Third week:      Second pattern discussed

   Fourth week:      Third pattern discussed

   Fifth week:        Supporting technical tools

   Sixth Week:     Live trade examples

3.   For each lesson there will be examples from past charts activities. For each lesson taught, all participants and I will brainstorm with many examples from the chart until the lesson is nailed.

4. Assignments will be given to all participants to label specific charts.

5. Participants will learn how to use Mt4/Mt5 analytical tools for easy analysis.

6. I will ensure to answer all questions in the best way I can.

7. Training will be delivered through a facebook secret group.

8. Many more that I plan to reveal and those I will end up revealing in the questions and answers session.

Price of training: #10000  or  $70 only.

 

If you want to consider how much you have lost trading and how much you set to gain from the knowledge, then the fee is so small.

 

How to enroll.

1. Send an interest message to forexmaster05@yahoo.com or to +2348134820569.

2. You will receive the payment details

3. Make payment and notify me.

4. Once your payment is confirmed, details on how to join the group will be sent to you.

ADMISSION CLOSES ON FRIDAY, 17TH JULY,2015. HURRY UP

IF YOU HAVE ANY QUESTIONS, SEND TO forexmaster05@yahoo.com or call +2348134820569.

YOU CAN ALSO MEET ME FOR A ONE-ON-ONE TRAINING IF YOU RESIDE IN PORT HARCOURT AND ITS ENVIRON.

More info for How To Trade Elliot Wave Patterns ~ upshot forex trading signals:

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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

More info for Rejection Candle Chart Patterns Hammer ~ what are forex trading signals:

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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


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