Tag Archives: fibonacci cluster

Trade: Sell DOTD DotDigital (Double Top, Possible Bat Pattern Formation)

Trade: Sell DOTD DotDigital (Double Top, Possible Bat Pattern Formation)

Snapshot:

DOTD Short Double Top Bat Pattern
DOTD Short Double Top Bat Pattern

Reasons For Trade:

1. Double top with bearish divergence

2. 50% Fib has been hit already

3. 0.886 fib confluence with 1.618 fib

4. 1.618 fib confluence with 200 sma

5. a Price gap around 200sma

Stop Placement:

49p

Targets:

First Target: 35p

Trade Execution:

Take position on market now

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
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EURAUD Gartley Pattern Butterfly Pattern ABCD Pattern 200SMA Short Forex Trading Idea

EURAUD Gartley Pattern Butterfly Pattern ABCD Pattern 200SMA Short Forex Trading Idea

Snapshot:

EURAUD Gartley Pattern Butterfly Pattern ABCD Pattern 200SMA Short Forex Trading Idea
EURAUD Gartley Pattern Butterfly Pattern ABCD Pattern 200SMA Short Forex Trading Idea

View it on TradingView

Reasons For Trade:

  1. Gartley Pattern completion in PRZ zone
  2. Butterfly Pattern Completion in zone
  3. ABCD Pattern completion
  4. Fibonacci confluence of 78.6 retracement and 127.2 extension of last retaracement
  5. 200sma in the zone
  6. Strong supply Area

Stop Placement:

Above supply zone

Targets:

as shown, there are 3 targets

  1. Structure based
  2. 38.2 Fib retracement from advanced pattern
  3. 61.8 FIB retracement from advanced pattern.

Trade Execution:

Wait for confirmation

  1. Take targets as you go along
  2. Tail stops on 3rd target as EUR can take a bearish rotation again to give large profits.

Concerns:

None

Planned News/Events Expected:

Week is packed with news

MonOct 26 5:00am EUR German Ifo Business Climate
TueOct 27 5:00am EUR M3 Money Supply y/y
8:30pm AUD CPI q/q
AUD Trimmed Mean CPI q/q
WedOct 28 8:30pm AUD Import Prices q/q
ThuOct 29 All Day EUR German Prelim CPI m/m
4:00am EUR Spanish Flash CPI y/y
4:55am EUR German Unemployment Change
8:30pm AUD PPI q/q
FriOct 30 3:00am EUR German Retail Sales m/m
4:00am EUR Spanish Flash GDP q/q
6:00am EUR CPI Flash Estimate y/y
EUR Core CPI Flash Estimate y/y
EUR Unemployment Rate

 

Post Execution Review:

Pending

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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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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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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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USDJPY Sma, Structure & Fibonacci Idea

USDJPY Sma, Structure &Fibonacci Idea

USDJPY Sma, Structure & Fibonacci Idea
USDJPY Sma, Structure & Fibonacci Idea

A. Reasons For Long Trade:

1. Price has gone oversold and is showing bullish divergence on RSI
2.  It may try to retest the point where 50sma crossed 200sma.

Stop Placement:

  1. Area below the immediate low

Targets:

  1. region between 200sma and 50sma on 1H chart. Just below the opening of the candle.

Trade Execution :

  1. Only one position for long

Concerns:

  1. None

B. Reasons For Short Trade:

1. Once the price has tested sma crossover, it may start falling down to retest lower levels. Price has  moved below sma indicating bearish flow.

Stop Placement:

  1. Area above the major structure high

Targets:

  1. First target will be 50% retracement of previous upwards impulse leg. There is a huge spike there at 119.630
  2. Second target will be at Fibonacci confluence of 1.618 extension and 0.786 Fibonacci retracement. This is because once target 1 is met and price keeps on moving downwards, there is not much structure on the way downwards.

Trade Execution :

  1. Wait for short signal in the zone above 120.078

Concerns:

  1. None

Planned News Expected: (UK Time)

WedOct 14
1:30pm
USD
Core Retail Sales m/m

USD
PPI m/m

USD
Retail Sales m/m

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.
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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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#AUDUSD 4H Fibonacci Trade

AUDUSD 4H Fibonacci Trade
AUDUSD 4H Fibonacci Trade

Reasons For Trade:

1. Close Fibonacci Confluence of 0.886XA leg with 1.272 AB leg
2.  RSI has been overbought i.e. above 80

Stop Placement:

  1. Above the are of resistance

Targets:

  1. 23.6 Fib Retracement of AD Leg will be the first target as this is currently respecting 23.6 instead of 38.2
  2. 50.0 Fib Retracement of AD Leg will be the second target as this is currently respecting 23.6 instead of 38.2

Trade Execution:

  1. Let the price reach the PRZ and look for Double Top or Bearish Divergence or an Advanced Harmonic Pattern completion in the zone on a lower time frame i..e. 1H or 15M chart.
  2. As soon as Target 1 is hit, move the stop to break even and close half of the position.

Concerns:

  1. Stop Placement. The Supply/Demand theory suggests stops where they are. However advanced harmonics dictates stops to go above previous structure.

Planned News Expected: (UK Time)

TueOct 13  1:30am AUD NAB Business Confidence
WedOct 14 1:30pm USD Core Retail Sales m/m
USD PPI m/m
USD Retail Sales m/m

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.
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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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#AUDCAD 4H Fibonacci, Gartley Short Idea

#AUDCAD 4H Fibonacci, Gartley Pattern Short Idea

AUDCAD 4H Fibonacci Short Idea
AUDCAD 4H Fibonacci Short Idea

Reasons For Trade:

1. Close Fibonacci Confluence of 0.786XA leg with 1.272 AB leg
2. Gartley Pattern
3.  RSI has been overbought i.e. above 80

Stop Placement:

  1. Above the are of resistance

Targets:

  1. 23.6 Fib Retracement of AD Leg will be the first target as this is currently respecting 23.6 instead of 38.2
  2. 50.0 Fib Retracement of AD Leg will be the second target as this is currently respecting 23.6 instead of 38.2

Trade Execution:

  1. Let the price reach the PRZ and look for Double Top or Bearish Divergence or an Advanced Harmonic Pattern completion in the zone on a lower time frame i..e. 1H or 15M chart.
  2. As soon as Target 1 is hit, move the stop to break even and close half of the position.

Concerns:

  1. Stop Placement. The Supply/Demand theory suggests stops where they are. However advanced harmonics dictates stops to go above previous structure.

Planned News Expected: (UK Time)

MonOct 12  6:20pm CAD BOC Gov Poloz Speaks
TueOct 13 1:30am AUD NAB Business Confidence

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.
---------------------------------------------------------------------------------

$EURUSD – #EURUSD Short Idea (#Forextrading, #Forex) –

#EURUSD Short Idea

EURUSD Short Idea

1. ABCD Pattern
2. Fibonacci Confluence
3. HTF Trend Line
4. HTF 200sma
5. HTF RSI reaching Overbought Level

$EURUSD – #EURUSD Short Idea (#Forextrading, #Forex) –

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Disclaimer: This web site is just my financial trading log and is for educational purposes.
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Please see the Disclaimer page.
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EURUSD Short Idea (3 Drives, Harmonics, Fibonacci)

#EURUSD SHORT IDEA
EURUSD SHORT IDEA (3 Drives Harmonics, Fibonacci)
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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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How Fibonacci Confluences Work In Forex Trading?

There is no doubt that markets move harmonically. Each move in any direction is somehow harmonically associated to some other move in past. As traders we should be able to recognise these moves and make use of them for our profits.

Fibonacci confluence is an area/zone where more than two Fibonacci levels are in close proximity with each other. This zone has high probability of trend reversal and hence can be traded. Fibonacci confluence along with structure create powerful trading opportunities.

For example take an example as below. The zone marked in red had multiple Fibonacci confluences making is perfect zone for an trend reversal entry.

It had:

  1. 3 Drives Pattern completion
  2. ABCD Pattern completion
  3. 1.272 Fibonacci extension from last retracement
  4. 1.414 Fibonacci extension from previous retracement
  5. 50.0 Fibonacci level of impulse leg

It turned out to be a winner as the trend reversed from this zone achieving all targets:

#GBPUSD LONG IDEAS (200 SMA, ABCD PATTERN, STRUCTURE).-2png

Most common and major Fibonacci levels are:

  • 38.2
  • 61.8
  • 78.6
  • 1.272
  • 1.618

Other minor Fibonacci levels are:

  • 23.6
  • 50.0
  • 88.6
  • 1.113
  • 1.414

However it is important to note that not all Forex pairs use just major levels of Fibonacci. They have their own personalities. For example EUR pairs such as EURUSD uses these levels more often

  • 23.6
  • 50.0
  • 88.6

In the example below a confluence of 127.2 extension of last retracement with 88.6 of impulse was good enough to give us completion of two targets.

#EURSD 15 MIN LONG-2

USDCHF also makes use of these levels.

So it crucial to understand their personalities and use their usual Fibonacci levels to find the confluence zones.

Good Luck.

-TradeYodha

 

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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.
---------------------------------------------------------------------------------