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Tuesday, September 1, 2015

Another Reversal Trade on DOW (YM) Futures for 09/01/2015

The DOW futures have been getting decimated in the overnight trading sessions, but the 1-hour chart is showing a reversal setup. The RSI is showing a good divergence and there is a nice bullish engulfing candle that just closed. If the market does break north in the next few hours, the 16450 level may be a good target. This level held up price quite well, so I would say this level could now act as resistance. I usually play these trades with a buy-stop order at the high of the bar and a stop-loss order at the low of the candle.

Thursday, August 27, 2015

Intraday AUDUSD Price Pivot for 08/27/2015

The 15-minute chart on the AUD/USD pair is showing a nice pivot area at 0.7158. This level support price on three separate occasions during the US/Europe trading session. The 0.7158 area also acted as resistance earlier in the day, so this price level is a proven pivot area in my eyes. This area is likely to act as support in the future, as AUD/USD is currently trading at 0.7173, which is about 15 pips above the 0.7158 pivot. If price does manage to close underneath 0.7158, then this level will most likely turn into resistance, so keep that in mind as well.

Tuesday, August 25, 2015

EURUSD 15-Minute Chart Pivot Levels for 08/25/2015

With all of the crazy volatility over the past two days, I haven't posted any pivot levels, but today is a different story. The 15-minute chart on the EUR/USD is showing a very clean pivot level at 1.1533. This level supported price quite a bit over the past 12 hours. The 1.1533 area also acted as resistance before price got above it, so this level is a very good pivot zone in my eyes. Price is currently trading underneath this area, so I would expect 1.1533 to now act as resistance.

Monday, August 24, 2015

Possible Reversal Setup on DOW and S&P500 Futures

The volatility today was unprecedented and just about everyone was in shock as the stock indices were dropping like there was no tomorrow. However, the charts are showing a potential reversal pattern forming, one of my favorites too: Pin-Bar + Divergence!!

I noticed this nice setup on the 1-hour S&P 500 futures chart. The Pin-Bar is very long and the RSI (Relative Strength Index) has been steadily rising today, which is showing a lack of selling momentum. I trade these kinds if patterns on several different time-frames and markets, and they do work quite well.

S&P 500 chart:

Dow chart:

I also checked the Dow futures 1-hour chart, and the same pattern is there as well, but there is an added bonus. The Dow setup has formed right at the extreme low from 10/16/2014. The Dow has not traded anywhere near 15548 since that day in October of last year, so the location of this Pin-Bar setup is absolutely perfect. Will we see a reversal tomorrow in the Dow and S&P500?? I can's say that with a 100% certainty, but the odds are pretty good!

Intraday AUDUSD Price Pivot for 08/24/2015

The markets have been extremely volatile since opening on Sunday, but great pivot levels are still forming. The 5-minute chart on the AUD/USD Forex pair is clearly showing that the 0.7250 area is of technical significance. The market used this area as support on two occasions in the past eight hours of trading. Once price closed underneath 0.7250, this area then acted as resistance. The AUD/USD pair is currently trading underneath 0.7250, so this area should now act as resistance again!

Friday, August 21, 2015

Intraday USDCAD Price Pivot for 08/21/2015

The 5-minute chart is showing two very defined pivot levels on the USD/CAD Forex pair. The 1.311 level acted first as resistance, and then as support, almost to the pip. This kind of alignment doesn't occur very frequently, but it does happen sometimes, so mark this pivot zone on your chart.

The second daily pivot area can be found at 1.314. The market had some trouble getting over this level earlier in the morning. Once price made it over 1.314, this level was then used twice as support! In my opinion,1.314 pivot area is stronger than 1.311!

The USD/CAD is currently trading above these pivots, so these price levels will very likely act as support! 

Thursday, August 20, 2015

GBPAUD 30-Minute Chart Pivot Levels for 08/20/2015

The 30-minute chart on the GBP/AUD forex pair clearly shows how well respected the 2.1390 area has been in the past several trading days. This level caused quite a bit of problems yesterday as price was unable to get over it on two separate occasions. Price also used 2.1390 as support today, so this level should be watched very carefully. Price is currently trading at 2.134, so 2.139 is likely to now act as resistance again.