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Wednesday, April 17, 2024

Chart of the Week #1


This put up marks the beginning of a brand new weekly class right here on the Tradeciety.com web site. From this week on, I will probably be sharing the chart of the week each Friday right here on our weblog. With the chart of the week, we’re going to take a deep dive into chart analyses, and worth motion buying and selling, utilizing a step-by-step strategy to understanding worth charts. 

This week, we’re going to try the AUD/USD. I shared this chart examine in my weekly e-newsletter beforehand. If you wish to be a part of my weekly buying and selling e-newsletter and obtain one electronic mail each Thursday with model new buying and selling ideas and one of the best chart research, you may subscribe totally free right here: Tradeciety E-newsletter

 

Let´s begin on the greater timeframe and we are able to discover plenty of nice insights concerning the worth motion right here:

  • The Double High marks the excessive level of the vary. When the worth fails to clear a excessive, the sentiment turns barely bearish. However there may be extra…
  • Subsequent is the Liquidity Seize. A Liquidity Seize is a fakeout sample. This sample reveals the rejection of the bullish try and take out the highs. One other bearish sign.
  • Then there may be the Break of Construction which indicators that the worth is now in a position to break into contemporary lows. At this level, it’s time to go to the decrease timeframe. 

AUDUSD_2023-08-03_09-29-38

 

On the decrease timeframe, we are able to see the breakout pattern wave. Nevertheless, one factor is necessary to look at right here: Though there’s a breakout, the pre-breakout pattern wave is extraordinarily bearish. The merchants who determine to only promote the breakout at this level are chasing the worth. That is usually thought-about unhealthy follow. The longer a pre-breakout pattern wave is happening, the upper the prospect of a pullback. So one of the best factor right here is to attend for the subsequent sign… 

AUDUSD_2023-08-03_09-30-31

 

Ready was actually the best determination. Though, on this instance, the breakout might have offered a small winner, this isn’t all the time the case and a pullback may also happen a lot sooner. Now, the worth has arrived again on the breakout stage and we are able to look ahead to assist to show into resistance. To get an excellent higher entry sign probably, we are able to go to an excellent decrease timeframe to look at the worth motion there.

AUDUSD_2023-08-03_09-31-06

 

The decrease timeframe reveals this wonderful Momentum Buildup sample. The value has constructed a pure assist stage and is de facto sticking to the extent. This reveals that there’s a lot of promoting curiosity that’s maintaining the worth that near the extent; the consumers can’t get the worth greater from there anymore. A breakout might sign the beginning of the subsequent pattern wave. That manner, the dealer wouldn’t chase the worth however enter comparatively early within the new pattern wave; a significantly better entry situation in comparison with the primary one above.

AUDUSD_2023-08-03_09-32-40

 

And voila. The ultimate consequence. After all, this is not going to work out on a regular basis however nothing in buying and selling works 100%. Nevertheless, this top-down strategy could be a nice basis for a buying and selling technique. I might advocate making an attempt it on Demo or in a Backtest (no actual cash!) and evaluating the effectiveness for your self.

AUDUSD_2023-08-03_09-33-05

 

That´s it for this week´s chart of the week. You’ll learn once more from me subsequent week with some new buying and selling ideas and my favourite charts.

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