Price has reached key flip levels for AUDUSD , USDCAD n USDSGD
From Daily charts:
Price reached the previous support turned resistance and continued to register 2 days of shooting star from a resistance confluence.
Price reached the key support of 1.400 and a key weekly pivot before registering 2 X d1 hammer.
A trade USDCAD D1
Similar to USDSGD D1 , USDCAD reaches a key level but the price action is much more obvious, with last friday registering an engulfing hammer over the previous day hammer.
In addition, there was a bear trap flush of 3 weeks low which suggests a high probability for uptrend resumption. I consider this as my A trade setup
the trend for NZDSGD has been severely downtrend for several months.
Last thursday a shooting star was printed, which flush several days high as well. This shooting star was printed against a 52weeks level as well, making this an A trade signal.
Entry plan and Sl will be as shown.
I was stoped out of the 1st trade. It was disaappointing as I had placed a larger than usual position size, and I was stopped about 8 pips away from the highest point. On retrospect I could have placed my SL above all 52weeks level, a key component for my trading methodology, but I did not.
however what was memorable was that after getting flushed out and dejected, I continued to look out for signs of 2nd entry. I spotted a double h4 trapped traders engulfing pattern. I thought several things
were aligned which could mean a high probability signal which could guarantee moveability , of at least 60-70 pips.
It looked something like this:
I took profit on a 2 x big pos and managed to cover back the losses from the 1st losing trade.
I am heartened to see the effectiveness of trapped traders phenomenon and how I cna use it to hit on immediate price movement.
D1 S&P looks like it has found a bottom again. D1 pivot shows support. After yesterday’s close, I have strong conviction of the double bottom, because of 1) The support from pivot 2) The powerful bearish-bullish expansion engulfing 3) that formed the double bottom 4) With macd divergence This made the SL very defined. Just that price is far away from the SL, so will have to manage risk with adjusted pos size .
Trade outcome 200615
Indeed trade has moved to identified levels.
The China ( Shanghai A50) is an index based on A-shares which are companies registered in China.
There have been big stories covered on the revivial of China sotck market earlier this year and since then a strong month to month trend has emerged.
I look to rejoin this smooth trend and look to the usual price pattern of a bullflag for fresh entries.
There were several things which I saw that suggested strong upside move.
All these things put together inspired a lot of confidence in this trade.
I grade this as A trade also because of the way SL can be clearly defined.
The crux will be getting to be filled by a good price.
Loading up the bullflag 1234 near the classic resistance turn support. I want to keep repeating this type of entry and trade on this type of setup. It is A trade setup for me.
D1 Big Picture
Venturing into various Equities market to have more oppoturnities to hit on A Grade Price Action setup.
Vard is a SGX equity that has been on a strong downmove since 2012. It was first identified in week9.
D1 Bear flag setup
With the bearish trend identified , I then looked for a pullback to get entry into. There was a solid Resistance in the form of 2014 Low, that happened to cap this bear flag, hence providing a good SL level.
D1 bulltrap trigger
The trigger came in the form of the a bearish engulfing which acted as a bulltrap.
3weeks later, exited at 40c for a 25% move. Verdict is that trades can definitely be held longer as I am playing for a downtrend continuation. Good identification of direction and timing overall but exit of the trade could have been better.
I believe this is the first prototype for equities trade that I am applying current forex trading principle onto equities. Although trade duration is much longer, it seems to be more stable as well. I am looking forward to have more success in CFD , so in the future I have more markets at disposal, as my edge lies not in extreme master of a particular fx pair, but rather the repeated use of trading methods based on trend, pullbacks & trigger.
Hence a plethora of markets should serve me better.
What I need to do next is to find out what happens if there are issues of counters suspension which may affect CFD trading.
Had been waiting for this trade for a long time with big picture planning.
this is classic neckline retest of a Double Top. If price should print a right shoulder, then it will be the highest probability retest via a hns.
The bearish engulfing day was significant because it happened near the confluence of the neckline as well as a f6. A topping pattern here will be extremely high probability.