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USDCAD Trendline Break and RetestThe USD/CAD pair recently witnessed a significant technical development as it broke below a key ascending trendline, marking the end of the preceding bullish momentum. Following the trendline breach, the price experienced a notable decline, eventually reaching a crucial support level. In a subsequent move, the pair retraced to revisit the broken trendline, now acting as resistance, and displayed a clear rejection, validating the newfound resistance. This rejection was followed by a renewed downward movement, suggesting a potential continuation of the bearish trend. The current trade idea entails taking a short position on USD/CAD with the target set at 1.36350. Closely monitor the price action and employ risk management to mitigate potential losses.
Short
by DennisDims
Using Pivot Points for Forex TradingIn the forex market, pivot points have long been a staple in the toolkit of forex traders, serving as key indicators into market sentiment and potential price action. Rooted in simple mathematics, they offer actionable insights into support and resistance levels. This article delves into the utility of pivot points in various strategies, including intraday, swing, and trend analysis. Understanding Pivot Points in Trading Pivot points serve as essential markers for traders. Understanding these levels is vital as they can signify potential turning points in price movement. When the market price is above the pivot point, traders generally expect bullish behaviour, eyeing the point as a support level. Conversely, if the market is below the point, it's often considered bearish, with the pivot point acting as resistance. These points are calculated based on the high, low, and closing prices of the previous trading session. The result serves as the "pivot" or the central point around which activity could revolve during the upcoming session. Think of them as the average price that acts as a balance between buyers and sellers. The basic pivot point calculation in trading is as follows: Pivot Point = (High+Low+Close)/3 There are various types, with the most commonly used being the Traditional pivot points. Others, like Camarilla and Woodie, provide additional flexibility and methods of calculation. But the core concept remains the same: they are used to identify crucial support and resistance levels. Most of the best trading software have forex pivot point calculators built-in, overlaying the indicator on price charts. FXOpen’s free TickTrader platform, for example, offers several of the best pivot point indicators, including Camarilla and Woodie’s points. You can also use the pivot calculator for stock CFDs. Using Pivot Points for Intraday Trading Intraday trading involves buying and selling financial instruments within the same day. For these short-term trades, this indicator can be invaluable in gauging market sentiment. Traders commonly use them to identify support and resistance areas for the day. These levels serve as potential thresholds where a price could reverse its direction. To apply them intraday, first, determine the pivot point using the previous day's data. Once calculated, it helps to plot the point along with resistance and support levels above and below it, generally referred to as R1, R2, S1, and S2. Bullish: A bullish sentiment might prompt a trader to buy near the first support (S1) and target the first resistance (R1) or starting pivot (P). Bearish: Conversely, a sell signal could be near the first resistance (R1) while targeting the first support (S1) or initial pivot (P). Applying Pivot Points for Swing Trading Swing trading aims to capture gains over a period of several days to weeks by analysing the momentum of financial markets. Pivot points are just as applicable here, but traders usually consider longer timeframes like hourly, daily or weekly charts. For the most part, the same principles apply here as with the intraday approach: the first resistance (R1) and support (S1) levels often provide a reaction. However, in the swing technique, the focus can shift to secondary or even tertiary areas (R2, R3, S2, S3) to account for extended price movements. To effectively swing trade with them, traders consider the larger market context. Are macroeconomic factors supporting the expected movement? Is there a strong volume to sustain the price to the targeted levels? These are important aspects to consider before making a decision. Using Pivot Points for Trend Analysis One of the critical tasks for traders is to identify prevailing trends, and the use of pivot points in trading can be particularly beneficial in this context. When prices consistently stay above the central pivot, it generally suggests a bullish trend. On the other hand, prices lingering below the line often indicate a bearish sentiment. To gauge the strength of a trend, traders may look beyond the main pivot to additional support and resistance levels. In a strong uptrend, for example, you might see the price break through the first and second resistance areas (R1, R2), reinforcing the bullish momentum. Similarly, a consistent failure to move above a particular resistance or dropping below a certain support can indicate a trend's weakening or reversal. While they alone should not be the sole criterion when analysing trends, they offer a robust and straightforward way to get an initial read on market direction. Advanced Techniques As traders gain experience, they often seek more nuanced strategies to enhance the accuracy of their trade decisions. Advanced techniques offer such options. Using Multiple Timeframes One approach is to apply this tool to multiple timeframes, say hourly and daily charts. This multi-layered analysis can provide a more comprehensive view of market behaviour. Combining with Other Technical Tools Another effective technique involves integrating pivot points in forex with other technical indicators like Moving Average Convergence Divergence (MACD) or the Relative Strength Index (RSI). For instance, a point aligning with a 50% Fibonacci level can provide a stronger signal for entry or exit. Extending the Levels In volatile markets, traders may also extend their analysis to the fourth and fifth levels of support and resistance (R4, R5, S4, S5). These extreme areas are less commonly reached but can offer significant profit potential when they are. The Bottom Line Pivot points offer an effective, straightforward method of gauging market trends and potential entry and exit points. As you've seen, they can be applied in multiple scenarios, from intraday to swing trading. If you're interested in incorporating these techniques into your trading strategy, consider opening an FXOpen account. Once you do, you’ll be able to access dozens of forex markets to deploy your new-found knowledge in. Good luck! This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
EURAUD: Bearish Continuation TradeAfter reaching the target price at the broken trendline and monthly pivot point, the market has formed a doji candlestick, indicating indecision among market participants. This doji, followed by a bearish continuation pattern, suggests that the market may be poised for a further decline. To capitalize on this potential bearish move, we may consider entering short positions with targets at the initial support level. This level has been previously tested and may act as temporary support before the market breaks down further to 1.62555. Additionally, we may consider placing stop-loss orders above the recent doji high to limit our potential losses in case the market unexpectedly rallies.
Short
by DennisDims
Tuimaz Zavod AvtobetonovozovInteresting company for a long run investment in the tracking production area, concrete field. Low volume less than 100 000 000 ₽ but speaking of a chart of the company it looks like ATR could go back to the 10.9 level where it was during first days of the september. Cherry on a pie is price in the moment of pumping do not go out of the R5/S5 pivots this means traders love the company and do not over-buy or over-sold it. Price target could be 280 ₽ or 360 ₽ for the common stock. Current relation of capitalisation to volume is 22.76 this means even due to low volume and low capitalisation company has a lot of minoritaries and this is good.
RUS:TUZA
by UnknownUnicorn462803
#EURGBP buying opportunityHello, traders. Let's examine the EURGBP chart, where the price is currently completing a pullback to the broken short-term bearish trendline after a change in market structure towards the upside. This provides us with an opportunity to position ourselves in alignment with the higher time frame. When you review the Daily timeframe, you'll notice a bullish impulsive move that has occurred. Since reaching the recent high, we've been experiencing a bearish corrective move until yesterday. The price reached a critical support area and formed a bullish engulfing candle, which closed above the high of the previous doji candle. This suggests that the bearish momentum may be coming to an end. Following the formation of the daily bullish engulfing candle, on the 4-hour timeframe, we observed a downward move. The price retraced to approximately 50% of the previous day's candle and approached the 200 EMA. These factors provide significant confluence for considering a buy position from this area. Furthermore, the price is currently testing the daily pivot area. Since the price opened above the pivot and is now testing it from above, this indicates that the price may continue its bullish momentum.
Long
by mohemati
3
#Oil buying opportunityHello dear traders and friends, I hope you are all having a great week. Let's take a look at Crude Oil prices, where it appears that the price has formed a support level around $80 to $82 after a 14% bearish move since the top formed in late September. In the 4-hour timeframe, we can observe that the price has already shifted its bearish market structure to the upside by forming a new high. What's particularly noteworthy is that this high was formed from a higher low, indicating that sellers were unable to push prices any lower despite the prevailing bearish trend. In the daily timeframe, things become even more interesting as the price has formed a significant bullish engulfing candle that has covered the last four daily candles. This suggests a high potential for upward movement. Additionally, in the 1-hour timeframe, we can see that the price is near a static support area, as indicated on the chart, and coincides with the daily central pivot area. This further supports the possibility of this area acting as a price low. Apart from the technical aspects, we are also aware of the ongoing tensions in the Middle East between Israel and Hamas. The potential escalation of conflict and involvement of other countries can have a positive impact on oil prices. Please also take a look at my other posted ideas which I'm sure you are going to like it and share your thoughts and feedback with me. Thank you.
CAPITALCOM:OIL_CRUDELong
by mohemati
EIHOTEL - INVEST & HOLD FOR 2 MONTHSEntry Level : 222 SL : 202 Targets : 242,256,273+ 52wk High : 274.95 52wk Low : 150.35 Mkt Cap : 139.49 B Disclaimer - All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made. Request your support and engagement by liking and commenting & follow to provide encouragement HAPPY TRADING 👍
NSE:EIHOTELLong
by Jagadheesh_JP