So after what seems like two miserable trades (AUDUSD and AUDCAD), it was time to revisit the charts. Based on a rather simple trading strategy, i’ve come up with 7 high probability trading set ups for this week.
XAGUSD – Silver
Long @ 20.046
Stops @ 19.709
Target @ 21.08
Long @ 1.3485
Stops @ 1.3398
Target @ 1.3708
Long @ 95.956
Stops @ 95.412
Target @ 97.35
Short @ 0.83756
Stops @ 0.84625
Target @ 0.8215
Other trades which are a bit too late to take on.
USDJPY Targeting 101.802
USDCAD Targeting 1.0583
The explanation is in the chart.
Bullish hidden divergence coupled with other factors that meet our criteria. Do note that the Candlestick pattern formed in the ‘Zone’ is not something which is bullish. So this trade idea should be taken with a pinch of salt. Given the open positions I have already in AAPL, AUDUCAD and AXP, i’m giving this one a go.
AUDUSD Daily Charts – Bullish
AXP, weekly charts paints an interesting picture that fits our trading model… refer to the chart below.
AXP Weekly Charts
Price action goes into the zone and makes a dark cloud cover pattern.
Consecutive candles try to push higher but fail to take the high created by the DCC candle @ 83.83
RSI gives a bearish divergence
The above 3 points gives us a conclusion that a) Price is either heading lower or b) Price is under going a correction.
To play this safe, we’ll short at 81.7 with stops at 83.83 and target the mid BB @ 77.15
USDCAD had triggered a long signal quite a few days ago but there wasn’t much of additional confirmation… until 2 days ago.
USDCAD – Daily Charts, Fib Confluence
Firstly, we have a piercing line candle formation on the 19/09. However RSI didn’t give out any additional confirmation. Going simply by the Piercing line formation in the ‘Zone’ the target is 1.062.
Price managed to push steadily higher.
Currently we notice a bearish divergence formed. Price making higher highs while RSI makes lower highs.
If we plot the Fibs from the recent high to the low of the Piercing Line candle, we see some interesting levels.
- Firstly, the 1.272 Fib level comes in dead close to the 1.62 target level
- Secondly, we have 1.03939 and 1.03127 as two possible areas of retracement
Ideally I would take a small position at both these levels with stops set to 1.01813. Of course, we’ll have to wait for a few more days to see how price continues before we get a solid confirmation. For now, we just watch USDCAD.
Its been a while and I haven’t published much recently. I’ve been long AUDCAD since yesterday. I’m trying out a modified version of the Bollinger Band/RSI trading method and publishing this idea in hopes to learn something from this.
AUDCAD – Confluence on Daily Charts
Reasons for Long:
- Hidden Bullish Divergence – RSI (14) makes lower lows while price action paints higher highs
- Candlestick pattern – Piercing line formation, in the ‘Zone’
- RSI double taps the 40 region
The confluence of all 3 factors thus give a bullish signal.
The entry is (was) the high of the candle prior to the piercing line candle @ 0.98089 and stops come in either at the PL low @ 0.97266 or the lower BB @ 0.9682
The target stays at 1.0058.
AUDCAD – Daily Charts, Trade Idea
Not much to write about. Still nursing a horrid hangover since Saturday night.
AAPL didn’t manage to close lower but today’s price action till now seems to be in our favor. We’ll need a close below the mid BB however for price to drop to our specified levels, or a reversal cannot be ruled out. Moving stops to BE would be ideal in such a case.
AAPL – 11/11 – Daily Charts
I’ve been experimenting a bit with different indicators, mostly the RSI (14) and also the %B indicator. They seem pretty much the same with some subtle differences. Anyways, will post back if there is something noteworthy to mention.