Tag Archives: demand zone

USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position

USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position

Snapshot:

USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position
USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position

Reasons For Trade:

  1. Fibonacci confluence of 78.6 of overall impulse leg, 61.8 of another impulse leg, 161.8 fib extension of recent retracement.
  2. Flat candle in zone suggesting new orders started from there which has fibonacci confluence with 88.6 Fibonacci retracement level and Fibonacci extension of recent retracement. This makes an area very string due to bat pattern formation.
  3. Level on Level demand area. So we will have to combine.
  4. This impulse leg has string ERC candles which broke previous structure.
  5. Due to 161.8 extension of recent retracement this zone also has completion of Butterfly Pattern too which coincides with flat candle and bat pattern completion on the same point.

Stop Placement:

Below flat candle

Targets:

First: 38.2 fibonacci retracement
Second: 61.8 fibonacci retracement

Trade Execution:

  1. Wait for confirmation in the zone.
  2. As there are 2 fibonacci confluence levels creating level on level demand zone take multiple positions using zoning technique.

Concerns:

None

Planned News/Events Expected:

Whole next week is packed with USD CAD  news

MonOct 26 10:00am USD New Home Sales 468K 546K 529K
TueOct 27 8:30am USD Core Durable Goods Orders m/m -0.4% 0.0% -0.2%
USD Durable Goods Orders m/m -1.2% -1.1% -2.3%
10:00am USD CB Consumer Confidence 97.6 102.5 102.6
11:20am CAD Gov Council Member Lane Speaks
WedOct 28 8:30am USD Goods Trade Balance -58.6B -64.9B -67.2B
10:30am USD Crude Oil Inventories 3.4M 3.7M 8.0M
2:00pm USD FOMC Statement
USD Federal Funds Rate <0.25% <0.25% <0.25%
ThuOct 29 8:30am CAD RMPI m/m 3.0% 1.2% -6.8%
USD Advance GDP q/q 1.5% 1.6% 3.9%
USD Unemployment Claims 260K 264K 259K
USD Advance GDP Price Index q/q 1.2% 1.5% 2.1%
9:10am USD FOMC Member Lockhart Speaks
10:00am USD Pending Home Sales m/m -2.3% 1.1% -1.4%
FriOct 30  8:30am CAD GDP m/m 0.1% 0.3%
USD Employment Cost Index q/q 0.6% 0.2%
USD Core PCE Price Index m/m 0.2% 0.1%
USD Personal Spending m/m 0.2% 0.4%
9:45am USD Chicago PMI 49.5 48.7
10:00am USD FOMC Member Williams Speaks
USD Revised UoM Consumer Sentiment 92.6 92.1

 

Post Execution Review:

Pending

View it on TradingView

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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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NZDUSD Fibonacci Confluence, ABCD Pattern, Demand Area Long Trading Idea

Trade: NZDUSD Fibonacci Confluence, ABCD Pattern, Demand Area Long Trading Idea

Snapshot:

NZDUSD Fibonacci Confluence ABCD Pattern Demand Area Long Trading Idea
NZDUSD Fibonacci Confluence ABCD Pattern Demand Area Long Trading Idea

Reasons For Trade:

  1. Fibonacci Confluence of 38.2 of previous impulse leg, 0.886 of recent impulse leg, 1,272 fix extension of recent retracement.
  2. ABCD Pattern forming
  3. Good Demand Area as price shot up from this zone in multiple ERC candles.
  4. 200sma reaching the zone
  5. Price is reaching over sold territory
  6. Psychological round number 0.6600 in zone

Stop Placement:

Below Psychological round number 0.6600

Targets:

  1. First target at opposite Supply location where 50sma was crossed by 10sma.

Trade Execution:

  1. Partition entries. First entry using limit orders and second to wait for confirmation in the zone to have better R/R ratio. This is because the price may come deeper in the zone to touch round number 0.6600

Concerns:

None

Planned News/Events Expected:

MonOct 26  10:00am USD New Home Sales 546K 552K
5:45pm NZD Trade Balance -822M -1035M

Post Execution Review:

Pending

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------

EURJPY BAT PATTERN FOREX TRADE IDEA LONG ENTRY

EURJPY BAT PATTERN FOREX TRADE IDEA LONG ENTRY

Snapshot:

EURJPY Bat Pattern Long Forex Trading
EURJPY Bat Pattern Long Forex Trading

Reasons For Trade:

  1. Bat Pattern forming.
  2. Due to sudden drop EUR is reaching oversold area. On H4 it is already oversold but on H1 it is not.
  3. Spikes close to red zone in chart show a Demand area. So price may come back to retest this that is when H1 will be oversold. This can give is a Double Bottom formation.

Stop Placement:

  1. Below point x of bat. Looking left I see another demand area on previous impulse leg. So including that too.

Targets:

  1. First: 38.2 Fibonacci Retracement
  2. Second: 61.8 Fibonacci Retracement

Trade Execution:

  1. At 38.2 close half of the trade and move stops to break even.

Concerns:

Demand are on previous impulse leg is wide and is beyond stop loss limits.

Planned News/Events Expected:

MonOct 26  5:00am EUR German Ifo Business Climate

Post Execution Review:

Pending

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------