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Consolidation

Dollar Index (DXY): Beginning of The Week Analysis | 7/24/22With interest rate and all the other lovely fundamentals the Dollar has been on bullish run of a life time! The last few days of the previous week, the Dollar did not do so much and even showed some initial temptation to keep shorting on Friday, but as you know .. it never that easy :-) Hence we ended with a three day consolidation. I expect we may see the Dollar perform some aggressive bearish moves from a technical standpoint, but the sentiments for the Dollar can change as we get closer to the FOMC release. It will be an important to understand this index especially is you are trading anything US related this week.
TVC:DXYShort
by CandlesofKarma
Consolidated Support & Resistance 1 WTF//TTK Prestige*It is a consolidated Support and Resistance as you all can see! *Also marked the previous move of the Trend by forming the almost Identical Flag-Pattern. *Broke both the 20 & 50 EMA's with a good bullish momentum, that made our stop-loss clear! *i.e., the ideal S-L would be around the previous week Green Candle. *Let the trend take a little retrace, then take the position after your own Analysis and Due Diligence *The trend is bullish as of now but the momentum purely depends upon the next week's opening and close.
NSE:TTKPRESTIGLong
by AxionAjay
XAUUSD: Liquidity Everywhere ⚠️Gold is a mess but it certainly is creating a lot of liquidity on both the buy and sell side. The range leaves us with uncertainty but we can try and make sense of what is going in. I would like to locate a short to sweep the buyer liquidity BUT I am concerned because the majority of the market has the same idea according to the sentiment. If price pulls back to the fresh supply, I will be looking for shorts AFTER we see a manipulation of the area. If price breaks the supply aggressively we can assume that our short idea will be thrown out of the window and we will have to begin to search for buy setups to sweep the equal highs. It's a tricky pair to work out currently, the best thing to do is sit on our hands.
OANDA:XAUUSDShort
by AlkalineFX
37
Gold is preparing for something huge!GOLD is right now trading in a support and resistance range between 1700 and 1740 dollars. A break above 1750 dollars would be a clear signal for opening a GOLD Long trade. The TP could be set at 1790 dollars. The War in Ukraine is going on and GOLD will stay an asset for crisis times like this, but the fed is raising the interest rates with fast steps so we might see people selling gold for investing into interest rates. The inflation will probably sink by 2023 and as you know the markets are trading the future so we might already see some effects of that right now. Also the USD will probably get weaker so the GOLD/USD pair would rise in value. All these Indicators are maybe a sign of a longer consolidation between these two levels. Hope you get some nice gains!
G
by HenrikDaCrypto
An Idiot's Guide to EURUSD: 5 Steps to Success 💲💲💲Synopsis If you trade Forex then you know the weekends are the best time to analyse the market. Everybody likes to talk about how volatile EURUSD is, but what they don't tell you is that the market is ranging a good 80%-90% of the time; good deals do NOT last long. In fact, half of a days price movement can play out in 15-45 minutes, It's that fast. The best entries are usually snatched up in a matter of minutes, meaning that slow momentum oscillators and lagging trend following indicators don't perform well in these conditions. EURUSD in my opinion trades a lot like CL (crude WTI), where trading decisions need to be made while volatility is low to mitigate risk. Translation: if you can't win in a range, you're going to blow your account in this market, trust me. I see so many people on here setting targets 2-3 times the daily atr with the expectation that they'll be paid by the end of the day or the next day. Don't do that, please. It's not a sprint, it's a marathon. Long term gains depend on practical consistent returns, not 10:1 RRs. It's actually a lot more realistic to take ZERO to two 20-40 pip trades per day. Over the course of a week it adds up. The chart: This week we came off of a really strong bullish surge away from parity, and the market then did what it does best, range. And the way that prices are moving right now is just classic EURUSD, I love it...I get so nostalgic, because ranges like these are how I learned to trade; the way that the market recycles over and over makes it so fun to trade, it never gets stale. Since it's the weekend and the markets are closed, I wanted to take this opportunity to share with anyone who might be wondering what it's like to day trade this market. How to trade ranges: Step 1: Find your levels... The easiest way is to map out support and resistance zones. On the chart, I use my own variation of the Williams fractals indicator (I call them Neo fractals 😎) for every prominent swing high or swing low, the indicator draws a horizontal ray from the highest, lowest close and projects it out into the future. You can see the spots where lines start stacking up in a certain price range act as stronger support or resistance than the areas with only one dotted line. It only takes about 5-10 minutes per day to do this by hand though, so an indicator definitely isn't necessary. It's really important to be able to eyeball pivot points yourself anyways. Step 2: Determine market phase... After you've mapped everything out, it becomes a lot clearer what's happening in the market, and if the market is ranging or trending. If the market's ranging, you will see far more s/r lines on your chart especially once you start seeing s/r lines stacking up close to one another. A clear giveaway that the market is ranging is when price makes strong moves in one direction, only to return back from where it came, later in the day. Once you've determined what phase of the market you're even closer to spotting high quality trades. Step 3: The next step is to find areas of value... In general you want to find the areas within the range which provide the most exclusive prices, And steer away from price ranges that hold 80-90% of the activity on the cart. Being 5-10 pips in profit before a big move will completely change the way you feel about a trade when it starts to go against you (plenty winning trades will go against you, especially if you're trading reversals). On the chart you can see that the supply and demand zones only produced 2-4 trades this week, but all of them were for over 50 pips. These aren't the only trades you can take, but they're definitely the highest RR trades, you can get in a ranging market. Step 4: What for confirmation... There are so many ways to confirm a move, but my favorite for this market is a phenomena that I like to call a spike. (There's probably an actual name for it, but I'm self taught so I just make stuff up as I go 😅) Find a hammer or star candle on a higher chart like the daily or 4hr and it look at that time period again on a lower timeframe, what you'll see is that the hammer or star is actually just a large price movement in one direction followed by an equally large movement in the other direction. What might appear as a spike on a lower timeframe will appear as a hammer or star on a higher time frame, and the larger and longer the chart pattern takes to complete, the larger and longer the move will be in the opposite direction. These are the Rolls Royce of signals. When you realize that a head and shoulders pattern is really just a series of spikes, it will completely change the way that you trade. In my experience, trading price spikes alone out performs every other chart pattern there is, because most candlestick and chart patterns are made up of a series of spikes anyways. Most consolidation periods end in a large spike followed by a 1-200 pip surge in the opposite direction. They appear most often on higher timeframes as hammers and stars, or large engulfment. but on the lower time frames you can watch these things play out over 5 ,10 or even 100 periods sometimes. The key is to have very strict rules for what you consider a spike to be, how many pips? What kind of ratio are you looking for? is it happening in an area of value? etc. Step 5: The range leads to the trend... The reason that trend following strategies under perform in this market is because strong trends don't last long on EU AND getting good value is insanely competitive. The key is to spot these trends early, you have to be looking when nobody else is looking. That means waking up earlier than everyone else and having a plan in place before the move happens...Not seeing a big candle and just hopping in. I try to have a daily strategy in place before the Asian session ends, that way, I''m ready for London and NY. I live in the US, so that means I'm waking up everyday around midnight to 1 in the morning. But most of the time, if my trade starts well, I go back to bed and check back in around 7. If you want to trade EURUSD, that's what it takes though. There might have to be lifestyle changes that you have to make (especially for North and South American traders) in order to really commit yourself to this market and give your trading it the attention that it needs.
Education
by NeoDaNomad
Summer BTC Movement Scenarios (End of Summer Rally ?)Hello everyone, I would like to share with the community my first analysis ever. First thing first I am in the process of learning, so all the feedbacks are more than welcome. --------------------- Let's start, I have been watching BTC movement very closely more than ever this bear cycle. Even more so as we are more likely to enter a recession cycle within the next 12 months. Not to mention the disastrous world economic situation resulting in the spiking inflation rates, the devaluation of USD and the worst of all: Oil crisis. ------------------- July 13 After BTC started its rally to "summer moon," a sudden reversal in trend formed a wedge on the Jul 20 by a reversal in trend caused by Elon Musk's BTC announcement (short). ------------------- Jul 22 BTC price started to show premature signs of what seemed to be a regular range movement upward to retest the wedge resistance (yellow) in a natural accumulation pattern to break upward (as the wedge initially formed in an already developed up trend). But things didn't not go as expected. The first red flag was that when retesting the support, the price started consolidating longer than usual near the support area then quickly rested the closest resistance before reversion as quickly downward to retest the same support again. In other words, the consolidation happened suddenly for an unusual length of time (breaking the ranging pattern). All this, oddly near the support area. It seems to me like a failed bull trap (as buyers did not bite in) - Let me know what you guys think ? Next thing you know the BIG DUMP (breakdown) that we all witnessed a few hours ago. --------------------- To conclude this mini crash broke this short term rally as you can see on the chart I shared. Will it rally ? Will it pull back and bring us to the price levels before July 13th ? All in all, The next days will tell us for sure. The 2 decisive Macro factors will be: 1) Retail sentiment / Adaptation to this breakdown or upcoming breakdowns if there will be. 2) Big NEWS / Breaking News. Bullish or Bearish. As per my TA: I foresee that we will be pulling back one way of another towards the 21.6K in the short-term. Retesting the 19K resistance in the mid-term. Thank you for your time. Please leave a comment, any kind of support will be appreciated ! Your Truly :) --------------------- DISCLAIMER: THIS IS NOT A FINANCIAL ADVICE. These are just my own analysis and ideas about the current market. I am not a professional financial advisor. ----------------------
Short
by Tradamus
63
#SPX Update 7-20-2022#SPX had a great run up into our 3974 Target. Nice move after finally breaking above 3900. Yesterday we saw more of a consolidation than previous. We cut our calls at our 3974 target for now. SPX has a chance to. Pullback from here if we dont enter the gap today. If we can break through we will see our 4000-4017 target area. Hard to enter calls here after the size of run. Cant enter puts with no reversal confirmation. Be PAYtient and let the trade come to you.
SP:SPX
by MoneyFlow_Options_Community