Descending Triangle [ChartSchool] - StockCharts.com

My EUR/USD Thesis

Hey everyone, long time lurker here. I'm a Finance/MIS student with experience in equity/crypto markets, and now looking to be profitable in forex and to contribute to this community.
I have put together an argument for why the EUUSD will be headed lower for the rest of the year and perhaps into 2019. There are both technical and fundamental aspects that will be presented, with an imgur album attached with a 4H, 1D, and 1W chart. The daily chart is attached with the post. Let's get started!
Technicals:
  1. From a 40,000 ft. perspective, the weekly chart presents a price channel going back to 2008 that the pair has traded in. In early 2018, the uptrend of 2017 halted and then reversed from the upper bound of the channel, while at the same time breaking downwards out of a symmetrical triangle formation - a clear reversal formation.
  2. On the daily chart, we have the 50 day SMA crossing the 200 day SMA on June 6, the first time this has happened since the beginning of an uptrend in May 2017.
  3. There is a potential descending triangle forming, which is labeled on the daily chart. There have been two overhead rejections, and two bounces from the supply zone. On the first bounce labeled "1", there was a bullish engulfing candle that failed to generate a significant rally - then on "2", there was not nearly as much buying pressure present off the bounce, signaling a likely continuation of the downtrend once the triangle is broken.
Fundamentals:
  1. The Fed is further along than the ECB when it comes to raising rates. The U.S. economy continues to experience strong growth in almost all sectors which has led the Fed to steadily increase interest rates. On June 14th, the ECB announced rates would remain unchanged which led to a bearish reaction for the EUUSD.
  2. While the U.S. has been no stranger to political instability, the EU is increasingly being affected by eurosceptic forces. The Italian populist government recently gained power and is implementing anti-EU policies and has considered dropping the Euro/leaving the Eurozone. Angela Merkel could potentially be ousted as Chancellor and thus the de factor leader of the EU over migrant policies.
The trade, and where it could go wrong:
I will open multiple trades after a retest of the supply-turned-demand zone at 1.151, with take profit levels outlined by the gray zones and the black line representing the height of the descending triangle. Trade wars, a downturn in the US equity market, and the de-dollarization in the world financial system are the three big threats to this thesis. If you have advice, opposing views, or just want to tell me I'm wrong, please let me know. Thanks!
https://imgur.com/a/mfzvquG
https://preview.redd.it/8qgds8j600611.png?width=2192&format=png&auto=webp&s=d613143b9eabc13cd3a47477d125fec49b588174
submitted by jakecberry to Forex [link] [comments]

Setups This Week (29th May - 2nd June)

Hey all, I'm back for another week so let's dive right into it!
Recap from last week
1) GBPUSD: The prediction regarding this pair's consolidation area seems to have been spot-on as we can see the price has moved and adhered to the area between 1.286 and 1.297 quite religiously. There was a brief fake-out that may have netted you a few pips (if you had a good trailing stop), but overall the price has opted to go for the "lower play" and has proceeded to hit the outlined target perfectly for just over 100 pips. I expect the price to rebound back to the consolidation area to retest the "upper play". Graph
2) EURCHF: The expected breakout has continued quite well, going as far as hitting the first target. As expected, there was a brief pullback to the entry price level but I expect it to continue its climb to Targets 2 and 3 over the next few months. Graph
New Setups
1) EURJPY: What we have here are signs of a potential rising wedge formation on EURJPY due to the higher highs and higher lows being formed since the 18th of May. Fibonacci levels applied on a larger timescale seem to show the price working well between the 0.5 and 0.618 levels - an idea supported by the recent rejection of a new high on the 16th and on the 24th. If the pair adheres to the rising wedge formation, we can assume that it will hit at least 3 different targets: Target 1 is a relatively new S&R level that seems to have formed at the beginning of May, Target 2 is a strong S&R level that stretches back a few months and happens to coincide with the 0.382 fib level of the yellow retracement lines, and finally Target 3 which is the area between the 0.236 fib level and the price where the rising wedge originated from.
In a longer-term view, we can see a double-top forming following a price rejection at 125.82. In keeping with how I usually approach double-top formations, there are two targets: A conservative target that is placed at the neckline and an aggressive target that is equidistant from the neckline. Despite all this analysis, the consensus on the Euro remains bullish . However, now that the French elections are behind us we can position ourselves quite nicely if the Euro ends up cooling off and losing momentum. In the event that it stays bullish and breaks through the 125.82, we have a simpler play worth about 65 pips which should tide us over until things clear up. Rising Wedge Play (Medium Term) Entry:124.965 (Price has already been hit but it is still worth a look) TP: 124.554, 123.813, 123.355 SL:125.643 Double Top Play (Long Term) Entry:124.965 TP: 123.074, 120.704 SL:125.643 Graph
2) USDCHF: I've given this pair another look since my last analysis on USDCHF 0.14% very recently hit its final target. Following that last target, we can now see that the price has been consolidating in the area between the 0.382 and 0.236 levels on the blue fibonacci retracements. From here, the price can push up through the 0.382 level to test the upper level of the channel again. The three targets outlined here are all based on important S&R levels that often coincide quite well with the fibonacci retracements on the larger time intervals.
Conversely, the price may opt to break through the 0.236 level with a goal of testing the lower wall of the descending channel . Again, we can 'safely' assume that it will hit three targets that are also derived from a combination of S&R levels and fib levels. What is interesting about this particular idea is that an "upper play" means that there is a strong potential for the formation of a potential wedge (marked by the red triangle). This would mean that the price already hit the wall of the wedge back on the 22nd of May and that the descending channel would be giving way to a falling wedge - which has implications on the long-term plans for this pair. Upper Play Entry: 0.97827 TP: 0.98142, 0.98534, 0.99039 (area) SL: 0.97549 ; Lower Play Entry: 0.96905 TP: 0.96791(area), 0.96286, 0.95503 SL: 0.97145 Graph
I truly hope you guys enjoy the read! Getting a lot of feedback goes a long way in helping me improve the quality and frequency of the posts!
Previous Weeks:
20th - 24th March
27th - 31st March
2nd - 7th April
17th-21st April
24th - 28th April
8th May - 12th May
I wish it was, but this isn't the gospel so please take the necessary precautions when trading
Have a good week and good luck!
submitted by Invictavis to Forex [link] [comments]

How the Pro's Trade Descending Triangle Chart Pattern How to Trade the Ascending and Descending Triangle Chart ... Descending Triangle Malayalam Forex Part 2 The Never Fail Triangle Trading Strategy - YouTube Forex chart formation patterns - YouTube

Descending Triangle is a mirror image of the Ascending Triangle. Like the ascending triangle, the pattern consists of a right angle triangle formation that follows a lengthy trending period. In the case of the descending triangle, the pattern takes shape after a period in which the stock in question has fallen from favor. This fall from grace may be the result of an earnings warning, product ... Forex triangle patterns main talking points: ... The take profit level is set using the vertical distance measured at the beginning of the descending triangle formation. Trading with Triangle ... The Triangle Pattern in Forex is a price formation that signals a potential trend continuation after a brief consolidation. In general, there are three types of triangle patterns: Ascending, Descending, and Symmetrical. When trading this pattern: Be mindful of the trend direction previous to the triangle formation. Place your trade only if the candle closes outside the triangle. Use the widest ... The Ascending Triangle Chart Pattern Forex Trading Strategy; Timeframes: Any but should try to use 15minute and above. Currency Pairs: Any. Forex Indicators: you don’t need any. The Descending Triangle Chart Pattern Formation Forex Trading Strategy Is the exact opposite of the Ascending Triangle Chart Pattern Forex Trading Strategy. That ... You can typically observe that volumes begin to fall toward the end of the descending triangle pattern formation. Develop Your Trading 6th Sense. No more panic, no more doubts. make the right decisions because you've seen it with your trading simulator, TradingSim. Learn About TradingSim. The chart below shows an example of the Microsoft (MSFT) daily stock chart. In the chart, you can see that ... Descending Triangle. The descending triangle is a bearish formation that usually forms during a down-trend and indicates distribution. In most cases, the formation is a continuation pattern with ... The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns. Regardless of where they form, descending triangles are bearish patterns that indicate distribution. Because of its shape, the pattern can ...

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How the Pro's Trade Descending Triangle Chart Pattern

In this video, @ricspooner_CMC uses the descending triangle to identify the formation against the USDCAD. This technical analysis strategies can help traders with either a buy or a sell set up ... Learn Forex - Ascending and Descending triangle formations by Trade It Simple. 1:25. Learn Forex - Symmetrical triangle pattern by Trade It Simple. 1:13. Learn Forex - Box range by Trade It Simple ... As you might expect, the descending triangle is the exact reverse of the ascending triangle, and is a bearish pattern whenever it is seen. Usually it will be seen in the context of a downtrend ... Ascending and Descending triangle chart patterns http://www.financial-spread-betting.com/course/ascending-triangle.html PLEASE LIKE AND SHARE THIS VIDEO SO W... Triangles are the best known and most respected and reliable patterns for trading from the charts. Triangles work for forex, cryptocurrency, commodities, sto... Descending Triangle Malayalam Forex Part 2 Trading Tips Malayalam. Loading... Unsubscribe from Trading Tips Malayalam? Cancel Unsubscribe. Working... Subscribe Subscribed Unsubscribe 299. Loading ...

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