Home Forex Chart of the Week #1

Chart of the Week #1

Chart of the Week #1


This publish marks the beginning of a brand new weekly class right here on the Tradeciety.com web site. From this week on, I will likely 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 method to understanding worth charts. 

This week, we’re going to check out 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 e-mail each Thursday with model new buying and selling suggestions and the very best chart research, you may subscribe totally free right here: Tradeciety E-newsletter


Let´s begin on the larger timeframe and we are able to discover loads 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’s 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’s the Break of Construction which alerts 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. 



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



Ready was actually the precise determination. Though, on this instance, the breakout may have supplied a small winner, this isn’t all the time the case and a pullback can even happen a lot sooner. Now, the worth has arrived again on the breakout degree and we are able to watch for assist to show into resistance. To get a good higher entry sign probably, we are able to go to a good decrease timeframe to watch the worth motion there.



The decrease timeframe reveals this wonderful Momentum Buildup sample. The value has constructed a pure assist degree and is actually 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 not get the worth larger from there anymore. A breakout may sign the beginning of the subsequent pattern wave. That method, the dealer wouldn’t chase the worth however enter comparatively early within the new pattern wave; a a lot better entry situation in comparison with the primary one above.



And voila. The ultimate consequence. In fact, this is not going to work out on a regular basis however nothing in buying and selling works 100%. Nonetheless, this top-down method generally is a nice basis for a buying and selling technique. I might suggest attempting it on Demo or in a Backtest (no actual cash!) and evaluating the effectiveness for your self.



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 suggestions and my favourite charts.



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