2022-12-19 • Updated
For those who may be unfamiliar with Price Action trading, the horizontal arrows represent areas where the market structure was broken. As you can see in the scenario above, price broke below the previous low at the two marked instances. Considering this from the Weekly timeframe, one can easily identify the market structure as bearish. The Fibonacci tool also indicates that price has been rejected from the 88.2% (which is a relevant level based on my personal trading approach). Let's break it down even further.
Here on the Daily timeframe, the bias seems a lot clearer. We see the initial reaction happened from a trendline resistance with the help of a rally-base-drop supply zone. Having completed that reaction, we switch to the lower timeframe to validate the possibility of a continuation.
The marked zone between 1770 and 1788 constitutes the preferred point of entry. As you can see, we have confirmed the initial reaction from the Daily supply zone with a break-of-structure on the lower timeframe. The BoS (Break of Structure) also happens to have created a new supply zone. As a result, we can expect price to drop from the area of entry with profit targets at; 1715, 1675, and 1655.
It is important to understand that the trading of CFDs comes at risk; if not properly managed, you may lose all of your trading capital. To avoid costly mistakes while you look to trade these opportunities, be sure to do your own due diligence and manage your risk appropriately.
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Bearish scenario: Sell below 2200 / 2194 ... Nearest bullish scenario: Buy above 2197... Bullish scenario after retracement: Consider buys around each indicated demand zone
Bullish scenario: Intraday buys above 2160.00 with TP: 2171 and TP2: 2177 // Bearish scenario: Sells below 2177 with TP1: 2150, TP2: 2142, and 2126
This article uses price action and volume profile techniques to address a fundamental and technical perspective based on the daily chart analysis of spot gold (XAUUSD).
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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