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

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

3 Ways to Identify Support and Resistance - 5 Chart Examples

By Elliott Wave International

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

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

These examples are adapted from Jeffrey Kennedys Traders Classroom service.

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

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

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

2) Trendlines offer resistance and support for prices.

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

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

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

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

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

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Usdcad Ready For Bullish Breakout - forex trading book reviews

Usdcad Ready For Bullish Breakout ~ forex trading book reviews

In my last post on Usdcad, I mentioned a triangle correction. If this correction holds and break upside, I will look forward to take a buy despite my overall bearish bias.

Presently, by the intraday chart, price has completed the fifth leg of the triangle and its now  going up.

 

This intra day upward move looks impulsive ( especially when viewed on the 15min chart) 

 

According to the wave pattern on 1hr, this first impulsive move should break out of the triangle if it is anything serious. 

 

The following correction should retrace to the break point of the triangle and a buy trade can be taken if price doesnt fall back to the triangle massively.

 

 

 

If price behaves this way, there is a high propensity of price getting to 1.2900 which a resistance level. 1.2800 is a closer resistance and we must watch how price reacts to it.

 

If price behaves otherwise and fall back to the triangle, more analysis will be needed as a very complex correction is at stake and care should be taken.

 

As price gives more data, we can see what its next movement could be.

 

You can scroll down to read some of the recent analysis I did on Usdcad for better understanding

I will be here to update you.

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Eurusd Completion Of Bearish Cycle - auto forex trading reviews

Eurusd Completion Of Bearish Cycle ~ auto forex trading reviews

This market has for long crashed down. I am one of the people waiting for a turn. With the completion of the long term bearish correction, price is expected to move up. 

A trigger is needed and it seems we have now.

 

From the weekly chart I have below shows the wave analysis from the beginning of this millenium 2000till date, during which we have a five wave impulsive move followed by a zigzag corrective patter. 

 

The B leg of of this zigzag is a triangle formation.

 Triangles are known to usually precede the end of a run. Price broke out massively in a trendy impulsive move ( this can be seen clearly on the daily chart). 

 

The C leg of the zigzag completes a 100% extension of A leg from B leg which is a very typical fibonacci relationship in zigzag corrections.

 

 

 

 Price is expected to turn from here to 1.1800 resistance, 1.2600-1.3000 ( breakpoint retest of the triangle) and if the long term bullish trend resumes, price go higher and higher.

Always check here for updates of the move and how I intend dealing with price actions along the way.

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Is Cadjpy ready to go down - forex trading with signals

Is Cadjpy ready to go down ~ forex trading with signals

On 15th June, we forecast a real strength in Yen. Yen pairs were expected to start falling according to the analysis titled Yen is expected to strengthen acrross board.

After a while, UsdJpy started falling but the Cadyen moved within a range.

We have been watching cadjpy for some time . The completion of the recent medium term bullish move could mean the completion of the long term zig zag correction which started in february.

The chart below shows the intra day wave count. A break below 99.45 could mean the continuation of the bearishness that paused before february.

 

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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. 

 

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Is Usdcad Ready For The Bullish Resumption - forex trading demo reviews

Is Usdcad Ready For The Bullish Resumption ~ forex trading demo reviews

If you want a comprehensive analysis on Usdcad, you can read the one I did on 20th of this month. The analysis supports a bullish move.

The recent bearish movement we had ( if completed) is a bearish complex correction and I expect Usdcad to rake high to 1.1850 ( more than 500 pips away) in a new bullish motive wave.

Coupled with the fact that Usdcad has a very strong negative correlation with Oil price which is dipping so fast, I won’t be surprised if the move is very fast to the north.

I will wait for an intraday retracement to 1.1310-1.1300 before taking a long bullish adventure on Usdcad

Meanwhile, I have a new wave count which doesn’t contradict my bullish bias

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I Love Diagonals Euraud! - forex trading signals urdu

I Love Diagonals Euraud! ~ forex trading signals urdu

This trade was one of the case studies of  trade the pattern and not the count. I am a strict advocate of pattern trading. 

 

Whats my business opening a position when a pattern is not in place?

Toward the end of April, I saw a diagonal pattern, a textbook one.

Prior to that, I have been following the pair since January and was trading along as tradable patterns are being revealed. 

A 5-wave impulsive move ended in January, 2014 ( my type of trade). I still dont undersatnd how I missed it.

 

 

A long term correction was expected. 

We saw the first leg of the correction ending in september. It was another 5-wave pattern. 

 

I dont usually trade the impulsive end of wave A( I prefer trading the corrective end of B), besides, the 5-wave pattern wasnt very clear ( I had to view through lower time frames to count). 

 

 An advance followed as expected which was a clear A-B-C zigzag pattern.

 

 

 

 

 I have traded more than 30 zigzag patterns since i started in the path of elliot wave and harmonic pattern trading. I love them and Ive gained a mastery of how to recognize and trade a viable zigzag correction pattern.

I traded this pattern on December 2014, though I didnt share the analysis here. I exited with 720 pips risking 340pips. 

 

My projection for this dip was at 1.3250. I determined to wait and see what price will do. I was not just expecting a dip to 1.3250 but in a motive wave--- a 5-wave impulsive move or an ending diagonal.

On April, 2015, an ending diagonal pattern was formed, a textbook one. The pattern completed at 1.3660, 420pips away from the projected 1.3250.

 

 

 

 

The pattern was so clear and I jumped at it after confirming with my entry parameters . I bought at 1.3965 and price moved a bit up.

Price moved up and down slowly in a typical diagonal end-of-formation move.

 

I posted an update here with an analysis titled Euraud at critical wave zones and I discussed how to profit from the diagonal effect. 

 

It was a good one. I was very happy when I got calls from readers of this blog and some facebook friends I shared with. 

Euraud has gone to 1.5 from there giving me 850 pips after risking 350pips. 

What a profitable patterns. I have seen many diagonals forming and traded a handful of them. 

 

They are not perfect, no system/methodology is, but are among the very high probability trades with good risk/reward ratio.

How I recognise diagonals will be explained in details in my coming 6-weeks mentorship course.

You can book a spot

Interested? Call or sms +2348134820569 or mail forexmaster05@yahoo.com

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Usdcad Analysis for (updated) - online forex trading course reviews

Usdcad Analysis for (updated) ~ online forex trading course reviews

I have the pleasure of going a long way with this currency pair, not just because the last analysis I posted on my blog was on Usdcad, but because I have a view of its past and present movement  ; and the analytical and forecasting tool for the future. From July 2014 when I started the journey, I have made predictions with excellent precision.

Usdcad broke out of a horizontal channel. Few could explain one reason or the other for the recent bullish move, yours sincerely is among the lucky few. The last post on Usdcad on 23^rdDecember 2014 can attest to that. In the post, I also stated a possible bearish return from 1.1715-1.1800. Presently I am in a bullish position with 100pips profit risking just 40pips.

With my recent analysis which I will soon share with you, I expect a return soon, but at some forecasted Price Reversal Zones

You will need an-above-average knowledge of Elliot wave theory and Fibonacci analysis to absorb all I will state below. If you need an e-book on Elliot wave and fibonacci analysis, you can mail me at forexmaster05@yahoo.comor fix a mentorship program with me and I will use all necessary tools to simplify the studies for you.

OK. Let’s get started.

Going by the long term, weekly chart I can say between January 2002 and November 2007 ( a period of almost 6years), price moved in a way that would have interested many core Elliot wave analysts around the world. Price moved in five non-overlaping waves, what we refer to as an Impulsive move which was bearish. There are a few things that are even more interesting about this move.

·         The fifth wave of the Primary Impulsive move was extended and not surprisingly, the fifth wave of the extended wave 5 was also extended.

·         One would expect a fast move to the region of the wave 4 of the primary impusive wave. Price did just that

After the completion of the Impulsive wave with all the internal wave structures well formed, price rallied to 50% retracement of the 6-years Impulsive move to 1.3050      ( March 2009) in 2 years and 4 months. The completion of an impulsive move must be followed by a corrective pattern which was not known as of the time.

Presently after another 5 years 10 months from March 2009, price has moved up and down in a wavy pattern.

 

 

The bullish correction to 1.3050 in 2009 is labeled as the ‘A’ corrective leg of a projected ‘ABC’ zigzag corrective pattern which was followed by a bearish move , labeled ‘B’ leg of the formative correction ( more that 78.6% correction of A) which ended in July 2011 and followed by an impulsive five wave move which I have been discussing since the second half of last year.

 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. In the nearer term, what is expected is the completion of the fifth wave of the first 5-wave drive of ‘C’. This completion could take us to 1.06xx before the long term bullish move resumes.

That is where we were coming from and with the eyes of forecasting, we can see where we could be in the coming years. This will help us to prepare further for the task ahead. We will also adjust and re-analyse as price move further. 

It’s a projection, it’s what could happen. While admitting the fact that we should only trade what is happening only but the importance of knowing what could happen can’t be ignored. We can see the present from the the past and use the two to forecast the future while we wait for it.

Zooming down to lower time frame, 4 hour chart, what we could see is a five wave impulsive move beautifully positioned in a channel. With the fifth wave heading to the roof of the channel, we can only wait for a reversal which is imminent.

The fifth wave of the 4 hour Impulsive move can be seen clearly on the 1hour time frame; which is expectedly and clearly an impulsive move also. Bearishness is imminent.

 

What is my target zones of reversal? Fibonacci tools will be of great help. With about 20 Fibonacci projections of price from various important swing points, I have come with two zones.

1.       1.1830- 1.1850 reversal zones are the most probable given the fact that they fall within a strong horizontal ( resistance ) and diagonal ( trendlines )  resistive zones.

·         1.1830 is the 100% Price Projection of wave 1 from wave 4 of the hourly chart

·         1.1850 is the 61.8% Price Projection of waves 1 to 3 from 4 of the hourly chart

·         1.1850 is the 78.6% Price projection of wave 1 to 3 from 4 of the 4 hour chart

2.       1.1890-1.1920 reversal zone is the next if the first reversal zone is penetrated. This is less probable than the first reversal zone considering the fact that it’s above the strong resistive zone. But price can still get there after a brief penetration above the resistive zone followed by an immediate return below it.

A bearish reversal candlestick pattern on the daily or weekly chart, a divergence or any other reversal signal will be enough to start a bearish journey if price gets to any of these zones.

Profit targets could be at 1.15xx, 1.12xx ,1.11xx depending on the entry and risk management.

I see dollar weakening against the Canadian Dollar in the first half of 2015 as I expect a bearish move targeting 1.06xx.

These are probabilities and one is expected to follow price as it unveils more information. How fast things can change by events and economic happenings. Having a knowledge of what price is doing and could do, will serve as a barometer and analytical compass for Us.

I update my blog regularly, you see my old posts and download free e-books on Elliot wave  and Fibonacci analysis .

If you are not in my mailing list, you can forward a request to forexmaster05@yahoo.comand I will send pdf of my Analysis, Elliot wave teachings and recommended trades directly to your mail box.

You can also send a request for an online mentorship course on the following market methodologies.

·         Elliot wave theory and Analysis

·         Fibonacci Analysis

·         Advanced Fibonacci Analysis

·         Momentum Analysis

·         Gann Analysis

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