Reversal setups

REVERSAL SETUPS

I have found a nice article about reversal setups today for use in forex scalping enjoy.

 

In the following text we take the reversals in downtrending markets in action but its basically the same but
vice versa for uptrends.

 

1

if you determined a level of interrest where you want to do buisness in ie. in the following cases at a support level
you have to understand first that price dosent care about YOUR Bar/Candle interval price moves independent of
time intervals. so a support level on the daily intervall and a reversal on that level may never be VISUALLY realized
on the daily chart but on much lower time intervals *but thats a topic for another article , we focus now on basic
reversals based on price behaviour .

and again each reversal presented in the chart has different market mechanics and market psychology at hands*
but then again on each setup shown in the chart there can be written whole articles which will be covered on a later
date. aswell as the markets arent black and white (which would be to easy 😉 ) so there comes money/position and
risk management into play* which again will be adressed some date later.

so that aside lets dive into the reversals as in the words of richard wyckoff

A Reversal is nothing more then a change in trend based on a change in behaviour of supply and demand

Price only stops a decline if the buying holds support then we may conclude that demand is begining to overcome
supply, and that the next logical developement for final confirmation of a reversal will be the markets ability to rise
above the top of the last rally.

If an established trendline which serve as a guide on the stride and pace of the price movement gets violated,
often but by any means not always may signify that the formerly force of supply or demand in effect is now becoming
exhausted. this may either mean that the price movement is merely changing its rate of progress , or it may mean that
the trend is definitely in danger of being reversed.

The actual violation of a trend line often (but by no means invariably) may signify that the previously effective
force of supply or demand has been overcome by a new force which is causing a new trend to develop. However, as
before, we must look to the other accompanying symptoms for our decision as to whether this one indication alone
(i.e., the violation of a trend line) may be accepted as true or false.

It is bad practice to buy an Instrument simply because it has penetrated an established supply line or broken out of
an extended congestion area; or to sell it merely because it has violated a line of support or broken through the
bottom of a trading zone, and for no other reason. Do not forget: The breaking of a trend line, by itself, is neither a
conclusive nor an all-inclusive symptom. The significant thing is HOW the line is broken; the conditions under which
the change of stride occurs. The behavior preceding such an indication must also be taken fully
into account.

In short, the quality of the buying or the selling at and around the point of penetration determines whether the
violation of an established stride may be regarded as evidence of a further movement in the direction of the
breakthrough, or whether it means only temporary change. This admonition applies equally to the violation of former
tops and bottoms and old levels of resistance and support.

If one doesn’t understand trend, he’s going to have trouble understanding breakouts, retracements, and reversals. If
he doesn’t understand support and resistance, he’s going to have trouble understanding how and where and when
to enter and exit, much less where to take profits.

Hot news for the coming week from insider trading

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forex scalping gbpusd17 6 2015

forex scalping gbpusd

Forex scalping gbpusd

Finally after two days of ranging we had a breakout today.

I was waiting in the supply zone this noon for a scalping trade

We are currently at +40 pips and I will close the scalping trade.

forex scalping gbpusd

gbpusd orders today

Offers  1.5650-55 1.5670 1.5685 1.5700 (stops above) 1.5725 1.5745 1.5780 1.5800

Bids   1.5620 1.5600 1.5585 1.5565 1.5540 1.5520-25 1.5500 1.5480-85 1.5460 1.5445

GBPUSD: With GBP strengthening strongly further on Wednesday, further bullishness is envisaged. This development leaves the pair targeting further upside towards the 1.5813 level where a break will aim at the 1.5850 level followed by the 1.5900 level. A break will target the 1.5950 level where a violation will aim at the 1.6000 level where we should see price hesitation. Its daily RSI is bullish and pointing higher suggesting further upside. On the downside, immediate support lies at the 1.5650 level where a break if seen will aim at the 1.5600 level. A break of here will turn attention to the 1.5550 level. Further down, support lies at the 1.5500 level. On the whole, GBP continues to retain its upside bias.

Once more, the sterling bulls have managed to fight towards the end of the day and have achieved a closing level towards the high of the day. The move towards a test of $1.5700 key resistance continues even if it is being done at a slow and steady pace. Seemingly every day there is an initial sell-off on Cable that threatens the bull run but sure enough, the bulls fight hard and win over later into the session. This has happened in each of the past 7 days. The momentum indicators are positive without being spectacular (probably due to the gradual creeping gains) but for now we must back the bulls. Having left a series of higher lows on the intraday hourly chart, the latest support is now at $1.5540, above the $1.5485 low from Monday. Hourly momentum indicators also remain modestly bullishly configured. The he big caveat could be the FOMC tonight though which could scupper the bull run if it is even remotely hawkish. However volatility could remain high today with UK employment data and also Bank of England minutes on the agenda.

Pound is strong above key support 11-6-2015

Pound is strong above key support

GBPUSD – Sterling/dollar is staying strong above the  key support  down near 1.5170. We will be buyers on weakness  above that 1.5170 support in the coming sessions. You can watch the 1 hour, 4 hour or daily charts for buy signals .Forex scalping intraday trades possible.
 gbpusd

Offers 1.5480 1.5500 1.5530 1.5550 1.5580 1.5600

Bids  1.5440-45 1.5425 1.5400 1.5380 1.5365 1.5345 1.5330 1.5300

GBPUSD: Having followed through higher on Wednesday, further bullishness is envisaged. This development leaves the pair targeting further upside towards the 1.5600 level where a break will aim at the 1.5650 level followed by the 1.5700 level. A break will target the 1.5750 level where a violation will aim at the 1.5550 level and possibly higher towards the 1.5600 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, immediate support lies at the 1.5450 level where a break if seen will aim at the 1.5400 level. A break of here will turn attention to the 1.5350 level. Further down, support lies at the 1.5300 level. On the whole, GBP continues to retain its upside bias on correction

forex scalping cadjpy

Northern Lights chart CADJPY trade we gave yestewrday live is in +41 pips now

Rising triangle breakout 10 6 2015

Rising triangle breakout cadjpy

Rising triangle breakout in cadjpy 240 min

Here’s a setup that I’ve been watching for sometime: a rising triangle on CAD/JPY. Now that it’s broken to the upside, is it an opportunity to buy with minimum stop loss.cadjpy breakout
Over the course of April and May, we saw the major psychological level of 100.00 hold as resistance, at least until last week when we saw a better-than-expected jobs report from Canada. Now that 100.00 is broken, will momentum buyers hop in to play this pair long?With the longer-term trend on the yen continues to be bearish (BOJ likely to continue huge quantitative easing program), and the recent Canadian jobs data could convince the Bank of Canada to hold off on a rate cut.

Of course, there are risks to the downside, and probably the biggest one that I can see for this pair is possibly another fall in the oil markets (Loonie has a strong correlation to oil prices), likely on emerging market demand (especially China). But I don’t think we’ll see another big shock in oil prices any time soon; if anything, demand could rise later from the U.S., typical behavior during the Summer season.

So, I’m looking to play this “break-and-retest” setup at a major psychological level, with the higher “lows” supporting the argument that buyers are still firmly in control. My stop will be a small one  and my target will be the most recent swing high on the higher time frames, last seen in December 2014.

Long  position CAD/JPY at 100.00, max stop at 99.42, max profit target at 105.00

forex scalping software chart of cadjpy with breakout and ranging boxesforex scalping softwareforex scalping brainwave entrainment

Weekly setups in Majors 8 6 2015

Weekly setups in Majors 8 6 2015

Weekly setups in eurusd,gbpusd,nzdusd

As we said on Friday about the eurusd pinbar on the daily the pair bounced from resistance and fell.There is potential for more south movement this week to to the next support area near 1,820 area.If you miss this move wait for a rally in the midle of pinbar and short it there from 1,1300 to 1350

weekly setup eurusd

British pound is consolidating after it touched the support in 1,5169.We are looking for a price action signal in 1.5170 area this week. weekly setup gbpusd

We will sell rallies in nzdusd  between 0,71865 and 0,72765 this week

weekly setup nzdusd

insider trading

EUR/USD: Correction Complete; USD/JPY: Interim Target Achieved – Westpac
08 Jun 2015 00:57 EDT

Friday’s EUR/USD close completed a bearish 3 day pattern, confirming the end of the recent upward correction, notes Westpac.

“Target retest of 1.0800/50,” WP projects.

EUR/USD: Correction Complete; USD/JPY: Interim Target Achieved - Westpac-2-png
Turning to USD/JPY, WP notes that it interim target achieved at 125.60/90.”MT Momentum bias remains positive. Close above 125.70 targets LT trend line at 127.30/50,” WP argues.

Risk sentiment has been unstable of late, mainly on the back of rising Fed rate expectations. Friday’s stronger than expected US labour data should reinforce the view that the Fed is considering higher rates in September. While such prospects should keep the USD in demand, they should come to the detriment of liquidity expectations and investors’ appetite for risk assets too. Nevertheless, from a broader angle further improving global growth expectations should compensate for falling liquidity expectations.

Elsewhere, we remain of the view that the EUR should be sold on rallies. While Greece-related uncertainty is likely to keep demand for EUR-denominated assets muted, the ECB made clear that QE will run its course regardless of improving growth and price developments.

This suggests that there is additional room of diverging Fed-ECB monetary policy expectations to the detriment of EUR/USD.

Ahead today it will be quiet in terms of market moving data releases. If anything the main focus will be on speeches by ECB members and ongoing developments as related to Greece.

Short signal EURUSD 5-6-2015

Short signal EURUSD in daily chart

Short signal in the form of Bear Harami appeared in the daily chart of eurusd.

The price can climb the 3/4 of the candle and then short it with a minimum stop loss there but additionally the day is dangerous since it is NFP day.

forex scalping software chart

forex scalping software chart

daily chart

short signial eurusd

If we hold below 1.1450 we would expect to see a move lower in the coming days, perhaps with a re-test of the key support down near 1.0820.

insider trading

EURUSD orders 5 June
Fri 5 Jun 2015 07:51:01 GMT

Currently 1.1267 enjoying some solid support so far

Offers 1.1285 1.1300 1.1320 1.1350 1.1380 1.1400

Bids 1.1230 1.1200 1.1185 1.1150 1.1120 1.1100 1.1080 1.1050

EUR/USD: At least temporary halted. The pair moved a little deeper into the 1.13’s than expected before returning to the outlined 1.1242 correction target. Given the violation of 1.1208 (on Wed) the best fitted wave pattern calls for the setback to be corrective and that there’s a high above 1.1468 lurking. For today we are initially looking for bids around 1.1175 (secondarily around 1.113).

 

Forex scalping 4-6-2015

Forex scalping nzdusd

We are in a week full of news and tomorrow is NFP day.

I took this short when I took a proper chance after New York open.

Forex scalping target achieved and entry is locked to intrady trade.

I will give this trade until tomorrow morning in Frankfurt open.

forex scalping nzdusd

insider information

Today has been another volatile day in the markets with government bonds, stocks and currencies bouncing around wildly in no clear direction. Commodities have been weaker with gold hitting its lowest level since May 1 and crude oil plunging ahead of tomorrow’s OPEC meeting where the cartel is widely expected to maintain its production quota of 30 million barrels of oil per day. This has put pressure on commodity currencies across the board. Unsurprisingly, the dollar has bounced back after a sharp two-day sell-off as traders prepare for the US monthly jobs report tomorrow. With several labour market indicators improving last month, expectations are high that the report will reveal another strong gain in the number of nonfarm payrolls (consensus: 226,000 vs. 223,000 in April).

Typically, it is the USD/JPY currency pair that shows the most straight forward reaction to the jobs data. But this time, we are looking at the NZD/USD because this pair recently took out a key support level around 0.7200, which has now turned into resistance. As the buyers have failed to hold their ground here, this could lead to further technical selling. The fundamentals don’t look great either for the Kiwi with the RBNZ recently turning dovish amid the sharp falls in key commodity prices, such as powdered milk. Meanwhile the Fed remains on course to raise interest rates later this year. Thus, the NZD/USD pair remains extremely vulnerable for both technical and fundamental reasons.

The Kiwi bulls are in desperate need of a bad jobs number. But if the data reveals another strong reading then the selling pressure could increase dramatically, as the bulls further reduce their positions. This, as well as the possibility of renewed selling pressure, could lead to a sharp drop in the NZD/USD.

As mentioned, the NZD/USD has not only broken below the key 0.7200 handle, but this level has now turned into resistance. The Kiwi is also stuck inside a bearish channel. So, as things stand, the path of least resistance is clearly to the downside. Only a closing break above 0.7200 or the upper trend of the bearish channel would alleviate some pressure. Until and unless that happens, a drop towards the psychological 0.70 handle looks the more likely outcome. Traders may also want to keep an eye on the Fibonacci extension levels of the last major upswing, at 0.7020 (127.2%) and 0.6825 (161.8%) as we could see some profit taking around these exhaustion levels, should we get there.

 

Forex scalping 1-6-2015

Hello,

Today we took early in the morning two trades on in euraud and one in gbpjpy

We took also another two which hit stop loss one in audusd and one gbpusd.

Sincew we have the ability with the forex scalping software northern lights s to set minimal stop losses we left the losers behind and pampered the winners.

Both forex scalping targets achieved and both of them are converted to intraday trades

Here is the situation in gbpjpy currently in +33 pips

forex scalping gbpjpyand in euraud in +35

forex scalping euraud

insider trading

Do You Add JPY Shorts In USD/JPY Or EUR/JPY? – Credit Agricole
01 Jun 2015 04:41 EDTThere is still downside available in JPY. While last week’s confession in the BoJ Minutes might have been widely anticipated, the weak April Household Spending numbers were certainly not.

If current policy settings cannot prompt stronger consumer spending, how can inflation targets be achieved? More QQE is the easy answer and thus we expect the probability markets attach to additional 2H stimulus to rise further this week undermining JPY.

Given this view do you add JPY shorts in USD/JPY or EUR/JPY? For all but the shortest-term traders (ie. hoping those to exploit a EUR/JPY bear-trap around Greece relief event) we prefer long USD/JPY given a more support Fed (US economic) view and our hunch that the latest surge in Japanese purchases of foreign bonds are more likely directed towards the US than Europe.