Chart of the Week #1

This put up marks the beginning of a brand new weekly class right here on the web site. From this week on, I shall 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 research 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 one of the best chart research, you possibly can subscribe free of charge right here: Tradeciety Publication


Let´s begin on the larger timeframe and we are able to discover lots of nice insights in regards to the worth motion right here:

  • The Double Prime marks the excessive level of the vary. When the worth fails to clear a excessive, the sentiment turns barely bearish. However there may be extra…
  • Subsequent is the Liquidity Seize. A Liquidity Seize is a fakeout sample. This sample reveals the rejection of the bullish try to take out the highs. One other bearish sign.
  • Then there may be the Break of Construction which alerts that the worth is now in a position to break into recent lows. At this level, it’s time to go to the decrease timeframe. 



On the decrease timeframe, we are able to see the breakout development wave. Nevertheless, one factor is essential to look at right here: Though there’s a breakout, the pre-breakout development wave is extraordinarily bearish. The merchants who resolve to simply promote the breakout at this level are chasing the worth. That is typically thought-about dangerous apply. The longer a pre-breakout development wave is occurring, the upper the possibility of a pullback. So one of the best factor right here is to attend for the subsequent sign… 



Ready was actually the correct choice. Though, on this instance, the breakout may have offered a small winner, this isn’t all the time the case and a pullback may also happen a lot sooner. Now, the worth has arrived again on the breakout degree and we are able to anticipate help to show into resistance. To get a fair higher entry sign probably, we are able to go to a fair decrease timeframe to look at the worth motion there.



The decrease timeframe reveals this wonderful Momentum Buildup sample. The value has constructed a pure help degree and is basically sticking to the extent. This reveals that there’s a lot of promoting curiosity that’s maintaining the worth that near the extent; the patrons can’t get the worth larger from there anymore. A breakout may sign the beginning of the subsequent development wave. That approach, the dealer wouldn’t chase the worth however enter comparatively early within the new development wave; a significantly better entry situation in comparison with the primary one above.



And voila. The ultimate end result. In fact, this is not going to work out on a regular basis however nothing in buying and selling works 100%. Nevertheless, this top-down method generally is a nice basis for a buying and selling technique. I’d suggest making an attempt 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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