Using Rejections + Price Action to Trade Reversals
Reversals are one of the most common elements in markets traders are wanting to either know of to avoid or confirm their trade. The clues to whether a reversal is in play are hidden in the price action and easily found. These key elements are found in rejections which show up in the price action formation of long wicks occurring at key price levels. Starting with the Rejection...
Read MoreChart of the Week April 26th
The EURGBP has broken out of the lower pennant which we suggested was very likely last week. The next question is where is the pair headed now and can it hit 80 cents? After three touches on the top and bottom side of the pennant, the pair has broken the key formation on the weekly chart which has held this pair for 1year and 6mos now. With a pattern holding for this long, everyone should be...
Read MoreIchimoku Report April 26th
EURUSD – Dueling Swords Plays out, Now What? As we talked about last week with the dueling swords formation, the pair has played out its expectation by returning back to the lows and even going a little bit further. After rejecting off the Kumo bottom, the pair has sold off making new lows last week so the Kumo bottom now becomes more relevant. On top of this, the pair opened last week,...
Read MoreChart of the Week April 19th
http://www.investorsalley.com/mc10/04-19/forexchart0419.jpgEURGBP – The Pennant Coming to an End? The EURGBP is coming into the Pennant which has held for over a year now but is the Euro going to hold against the Sterling this time? What is interesting to note about this pending touchdown is 2 pieces of information; The pair has closed lower 5 weeks in a row (assuming this one does) The pair is also coming into the final 10% of the...
Read MoreIchimoku Report April 19th
EURUSD – The Bi-Polar Pair After selling off for most of the year, the pair has formed its first 3 week gains on a closing basis. But whats most interesting about it is the pair literally has not gone anywhere forming the ‘dueling swords‘ formation after double bottoming off the yearly low while ponging off the Kumo bottom. Ultimately we feel the Kumo is too thick and at...
Read More