Welcome to Part 2 of our three-part series on Volume Profile Analysis. While traditional support and resistance analysis focuses on the visible extremes of price action, Volume Profile Analysis offers a unique advantage: the ability to uncover hidden pockets of volume that may act as strong, yet concealed, levels of support or resistance. These levels are often...
Negative gaps leave lasting scars on price charts, often forming formidable resistance levels upon retest. As Amazon approaches the critical area formed by its August 2nd gap, let's explore two strategies for navigating this retest.
Understanding Amazon’s Negative Gap
On August 2nd, Amazon’s share price experienced a significant negative gap, opening over 12%...
Welcome to the first instalment of our three-part series on Volume Profile Analysis – a technique that has the potential to add a new dimension to your price action trading. Let’s start by exploring the fundamentals of Volume Profile Analysis, its essential components, and why it is a valuable tool in your trading arsenal.
Understanding Volume Profile...
Gold has surged to record highs, breaking past the $2,500 mark for the first time in history. But with mixed signals from the market, the question remains: Can this rally hold its ground?
Why Is Gold Rallying?
Gold's recent rally is fuelled by a mix of macroeconomic factors and geopolitical tensions that have driven investors toward the safe-haven asset. The...
The combination of improved risk appetite and growing geopolitical tensions has benefitted oil prices after their sustained pullback last week. US crude (WTI) managed to push above $80 per barrel on Monday for the first time in three weeks as buyers rushed to get in at more favourable levels after the price of a barrel dropped to $72 earlier last week.
But...
Positive risk appetite has been driving equities higher after last week’s selloff but continued geopolitical tensions in the Middle East have been limiting the losses in gold. The precious metal is up over 2.5% in the past week supported by fears of broader regional conflict in the area alongside an increase in expectations for a dovish Federal Reserve following...
Brent crude has surged more than 8% from last week’s lows, marking a significant recovery in the oil market. Let’s dive into the technical and fundamental factors driving this rally and identify the key price levels to watch in the coming days.
Geopolitical Tensions: The Catalyst Behind Brent’s Resurgence
A key driving factor behind Brent’s recent resurgence...
USD/JPY has faced intense selling pressure over the past month and is now consolidating within a tightening wedge pattern. As the pair approaches a decisive point, we explore the potential scenarios that could unfold in the days ahead.
Why USD/JPY Has Fallen
Over the last month, USD/JPY has plunged more than 9%, driven by a combination of disappointing U.S....
In Forex trading, the major currency pairs—such as EUR/USD, GBP/USD, and USD/JPY—typically capture the spotlight with their high trading volumes and substantial liquidity. However, there are times when the most compelling trading opportunities emerge not in these major pairs but in the less frequently traded cross currencies—pairs that do not include the US...
With the S&P 500 dropping more than 9% from its July highs and the NASDAQ 100 plunging over 13% during the same period, formerly market-leading tech giants like Nvidia are pulling back to long-term support levels. In this analysis, we will put Nvidia under the spotlight and identify the areas of support with the greatest confluence. We will also discuss how to...
The negative sentiment that has taken over the stock market has spilled over into other asset classes too. Commodities have seen increased volatility in recent days as traders react to fears of a possible US recession, following weaker-than-expected jobs data last Friday. Oil, which is highly sensitive to the economic cycle, has seen a sharp downturn in recent...
The fallout from Friday’s disappointing US non-farm payrolls has triggered a cascade of bearish momentum in USD/JPY, exacerbated by shifting monetary policies. As the global stock sell-off deepens and panic sets in, we take a closer look at USD/JPY, which stands as a barometer of broader market sentiment.
USD/JPY Under Pressure
USD/JPY has been driven lower...
In Part 1, we explored a trend continuation strategy for swing trading. Now, let's shift our focus to a reversal strategy that targets market turning points using a fakeout pattern. This method capitalizes on failed breakouts, providing opportunities to trade reversals at key resistance levels.
Strategy Overview
Objective: Identify and trade reversals at...
GBP/USD is undergoing a steady pullback from its July 17th highs. Let’s explore how trend continuation traders can use technical indicators and multiple timeframes to refine their entry timing into GBP/USD’s pullback.
Daily Timeframe: Identifying a Confluent Support Zone
GBP/USD’s daily candle chart shows that the market has been in an uptrend since the...
The FTSE 100 has broken out of a wedge pattern that had been forming for over 10 weeks. Let’s explore the trading opportunities this breakout has created.
Breakout Follows Fakeout
Since mid-May, the FTSE 100 had been consolidating within a tightening trading range or wedge. After weeks of small daily ranges and choppy sideways price action due to low summer...
In this two-part series, we’ll explore straightforward yet effective swing trading strategies. Part 1 focuses on a classic trend continuation strategy designed to capitalise on established market trends.
Understanding the Trend Continuation Strategy
The trend continuation strategy is built on the principle of trading in the direction of the prevailing trend....
Tesla's share price is coiling within a symmetrical triangle pattern as the electric vehicle giant gears up to release its Q2 2024 earnings. Let's explore how to trade this setup effectively ahead of the highly anticipated earnings report.
Understanding the Current Trend
Tesla’s prevailing trend is bullish, following a two-legged recovery from the April...
Let’s examine two, simple yet significant price patterns that have occurred simultaneously in the gold market across two separate timeframes.
Daily Candle Chart Analysis: Failed Breakout
Last week's price action in the gold market was a tale of two halves. The first half of the week saw gold surge to new all-time highs following a combination of declining...
