6E - Accumulation

Good example of accumulation in play, with divergence and fibo references. 50% shown on the 4 hour chart on right as support, 6E accumulates entire day session after the fall and pops, and continue to pop into the afterhours trading. Stalls at 78% shown on the 1 hour chart in the middle.  MACD on 3200 tick chart on left shows the positive divergence for the accumulation in progress.

6E - Bull Wedge target hit

Refer to the post from March 16th on the falling wedge analysis, and see that the target has been reached today. There is no hard rule that says the targets hit on all patterns, but this one contributes to the statistics of target being hit. Notice that it retraced and bouncing from 78.6% of prior down move.

6E - High Probability Setup

When several technical tools all point to the same level, it becomes a level that act as strong support/resistance as a high probability setup. Here is an example of such case. On the left 1600 tick chart, where the pivot R1, 38.2% Fibonacci retracement, and channel trendline all converge at the same level, and surely the price bounces from it. Other supportive technical indications are also shown that are the positive divergences and falling wedge, which contributed to the upside move, which was explained in previous post..

6E - Falling Wedge on 4 hour chart

Many things are happening on this chart, but they are all explained. To sum them up, there is 50% retracement and -23.6% extension, then there is the falling wedge pattern from the double top, and the target as the distance measured from upper and lower trendline to be used as the distance from the break of the upper trendline.  Last but not the least is the positive divergence on MACD.  Notice how long it took to form this pattern, and how quickly is the move, and interestingly it was the news that fueled it.  Will it hit the target? We shall find out. Nothing is cast in stone, all technial anlysis is work in progress.

Simply Fibonacci

Been a while since I posted here. My recent personal life has been chaotic, and I won't go into that. Also, it seemed redundant posting same tools that work. But, make no mistake, when you try to trade it, it is not easy. There are multitude of factors seemingly unknown that affects the markets. Keeping it simple is always the best approach, many agree, and here is one that is pure and simple using the fibonacci tool.  It is a classic example of 50% retracement and -23.6% extension target. Watch how the price gyrated in between to achieve this move, and understand that is it not easy to trade even simple strategy like this. What is required is faith and patience, perhaps they are also called discipline.