A-B-C-D Trade - page 207
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Test was rejected at 88.6 retrace fib level.
Let's get back to the bounce trade scenario and calculate the risk/reward. We can see the resistance at the 78.6 price level of 1.1887. This means the difference between the 100% high of 1.1907 and the 78.6 is 20 pips.
A 10-pip stop-loss and 14 net pip take-profit = 1.4:1 reward/risk ratio.
Trader can set auto sell order neat top, minus 3-5 pips for cushion. Take-profit price must include your spread and cushion.
Example: Lurking Sell order at 1.1904, S/L at 1.1914, and Automatic Take-Profit at 1.1890.
The 06:00 hour is start of early birds ahead of European session and as such brings a spike in volume and volatility.
Many pairs and instruments have been in consolidation, including EUR/USD. That pair is now sitting on the yellow high and blue 78.6 from the PSQ9 chart we have been updating. Below is the Mars 90-degree support which may have one more bounce in it.
NAS100 (mimics NASDAQ 100 Futures) attempting to break back below 138.2 fib of 2218. High = 2208.
Gold CFD XAU_USD hanging around FE 100 price $1797, after aforementioned bounce off FE 161.8 yesterday.
Attached is 1-hour AUD/USD with PSQ9. Fib plot:
Wide (white): High = Aug 17th 1:00 1.06006 Low = Aug 19th 01:00 1.03147
Tight (yellow): Low = Aug 22nd 14:00 1.04613 High = Aug 26th 16:00 1.05915
We can see the pair thrust up shortly after week's open and hug resistance at the diagonal Moon 180-degree (green), which coincided with both the 127.2 and 138.2 fibs.
Pair proceeded to hit the tight 161.8 (yellow), same as wide 127.2 (white) and Mar 270-degree (red).
Currently, 06:00 price action has pushed price down to yellow 138.2 fib. level.
As a footnote reminder to new(er) viewers/traders, the AUD/USD is one of the pairs sensitive to commodity prices, such as oil.
EUR/USD testing 1.4484, which was aforementioned Mars 90-degree. Support just below that is week's low of 1.44642, established Aug 29th 01:00, which is also yellow 23.6 fib.
EUR/CHF reacting to negative 06:00 data. Price declined to Low of 1.18163. Therefore the bounce trade was on the bottom, and price just hit the 23.6 fib of 1.18377 for +21 pips gross.
R/R about 1.7:1
Let's change it up a bit and jump to the CFD GER30, which tries to mimic the German DAX.
Wide fib plot (gray):
High = Aug 17th 14:00 6015 Low = Aug 19th 07:30 5341
61.8 = 5758 (hit Aug 25th 07:00)
Tight fib plot:
Low = Aug 26th 14:00 5403 High = Aug 29th 06:30 5644
127.2 = 5710 hit Aug 29th 14:00
138.2 = 5736
Price tested above 127.2 and is being pushed back down at the moment. We drew lines to illustrate BAJA bearish divergence.
We would be more confident of the divergence if price came closer to the 138.2 price of 5736. It got as far as 5727.
Euro under pressure at European session open.
After 50% retrace, EUR/USD re-testing support.
EUR/CHF testing just posted chart's Low of 1.18163.
127.2 = 1.17916
138.2 = 1.17817
161.8 = 1.17602
Attached is 1-hour CFD USOIL, which tries to mimic U.S oil futures.
We have an extension to the upside touching the 161.8 fib at Aug 29th 22:00. Plot Low = Aug 26th 14:00 82.99 High = Aug 29th 07:00 85.90.
BAJA bearish divergence at that top.
Decline now approaching 138.2 price of 87.03 for +69-cent gross gain.
Note retrace plot based on Low = Aug 29th 09:00 85.33 has its 23.6 = 87.14 (just hit).
EUR/USD making push down to extension levels:
127.2 = 1.4461
138.2 = 1.44552
161.8 = 1.44421
Here's a split-screen with session colors and tight extension plot on the left. On the right is on-going PSQ9 with yellow and blue fibs.
Price stalled at yellow 23.6 but now dropping closer to extension levels.