Our winning patterns for week ending 2020-12-18
Resistance with breakout – example 1
EURUSD resistance with breakout on the 1H chart. Here is a splendid example of market indecisiveness. When you examine the chart, you notice that first EURUSD was about to revers after reaching resistance. Then, influx of buyers pushed price back to resistance level and from that point every time when EUR dropped, soon after buyers were boosting price up. Please notice higher lows creating triangle – this is one of the indicators of future price move – breakout upwards. And there it is – price squeezed between support and resistance shoots up like a bullet. S-V3 confirming incoming breakout with both lines at the top of oscillator. Massive 400 pips on one candle.
Resistance with breakout – example 2
EURCAD resistance with breakout on the 1H chart. Another example of an ascending triangle and its impact on the market direction. Here we can observe small resistance which together with support forming triangle. This time we can see buyers taking brake after quick and strong price advance. Again, same features as with the last example, helping us recognise that trend continuation is the only option here. S-V3 higher timeframe is at the top, which is a good confirmation of an incoming move up. If You watch the video, you notice that there was no confusion on market – BUY, BUY, BUY.
USDCAD support on the 1H chart. This was easy trade considering fact that we are dealing here with simple support. Judging by the price behavior – lower lows and higher lows – we can tell that neither buyers nor sellers are in control of the market. Your good helper in situations like this is addition tools – in our case it was S-V3 oscillator. Notice that bottom of the price align with bottom of S-V3. this is a great confirmation that USD is about to go up in value. And it was. Opening long position at this point could bring you 300 pips.