Hey all, I'm back for another week so let's dive right into it! Recap from last week 1) GBPUSD: The prediction regarding this pair's consolidation area seems to have been spot-on as we can see the price has moved and adhered to the area between 1.286 and 1.297 quite religiously. There was a brief fake-out that may have netted you a few pips (if you had a good trailing stop), but overall the price has opted to go for the "lower play" and has proceeded to hit the outlined target perfectly for just over 100 pips. I expect the price to rebound back to the consolidation area to retest the "upper play". Graph 2) EURCHF: The expected breakout has continued quite well, going as far as hitting the first target. As expected, there was a brief pullback to the entry price level but I expect it to continue its climb to Targets 2 and 3 over the next few months. Graph New Setups 1) EURJPY: What we have here are signs of a potential rising wedge formation on EURJPY due to the higher highs and higher lows being formed since the 18th of May. Fibonacci levels applied on a larger timescale seem to show the price working well between the 0.5 and 0.618 levels - an idea supported by the recent rejection of a new high on the 16th and on the 24th. If the pair adheres to the rising wedge formation, we can assume that it will hit at least 3 different targets: Target 1 is a relatively new S&R level that seems to have formed at the beginning of May, Target 2 is a strong S&R level that stretches back a few months and happens to coincide with the 0.382 fib level of the yellow retracement lines, and finally Target 3 which is the area between the 0.236 fib level and the price where the rising wedge originated from. In a longer-term view, we can see a double-top forming following a price rejection at 125.82. In keeping with how I usually approach double-top formations, there are two targets: A conservative target that is placed at the neckline and an aggressive target that is equidistant from the neckline. Despite all this analysis, the consensus on the Euro remains bullish . However, now that the French elections are behind us we can position ourselves quite nicely if the Euro ends up cooling off and losing momentum. In the event that it stays bullish and breaks through the 125.82, we have a simpler play worth about 65 pips which should tide us over until things clear up. Rising Wedge Play (Medium Term) Entry:124.965 (Price has already been hit but it is still worth a look) TP: 124.554, 123.813, 123.355 SL:125.643 Double Top Play (Long Term) Entry:124.965 TP: 123.074, 120.704 SL:125.643 Graph 2) USDCHF: I've given this pair another look since my last analysis on USDCHF 0.14% very recently hit its final target. Following that last target, we can now see that the price has been consolidating in the area between the 0.382 and 0.236 levels on the blue fibonacci retracements. From here, the price can push up through the 0.382 level to test the upper level of the channel again. The three targets outlined here are all based on important S&R levels that often coincide quite well with the fibonacci retracements on the larger time intervals. Conversely, the price may opt to break through the 0.236 level with a goal of testing the lower wall of the descending channel . Again, we can 'safely' assume that it will hit three targets that are also derived from a combination of S&R levels and fib levels. What is interesting about this particular idea is that an "upper play" means that there is a strong potential for the formation of a potential wedge (marked by the red triangle). This would mean that the price already hit the wall of the wedge back on the 22nd of May and that the descending channel would be giving way to a falling wedge - which has implications on the long-term plans for this pair. Upper Play Entry: 0.97827 TP: 0.98142, 0.98534, 0.99039 (area) SL: 0.97549 ; Lower Play Entry: 0.96905 TP: 0.96791(area), 0.96286, 0.95503 SL: 0.97145 Graph I truly hope you guys enjoy the read! Getting a lot of feedback goes a long way in helping me improve the quality and frequency of the posts! Previous Weeks: 20th - 24th March 27th - 31st March 2nd - 7th April 17th-21st April 24th - 28th April 8th May - 12th May I wish it was, but this isn't the gospel so please take the necessary precautions when trading Have a good week and good luck!
What is Equidistant Channel? Equidistant Channel is an indicator that automatically adds a trend line parallel to the trend line. How to draw Equidistant Channel. It’s very simple with 2 clicks you can draw the Equidistant Channel. Click the “E” symbol icon displayed on the MT4 toolbar. Equidistant Channel represents two parallel trendlines connecting extreme maximum and minimum close prices. Market price jumps, draws peaks and troughs forming the channel in the trend direction. Early identification of the channel can give valuable information including that about changes in the trend direction what allows to estimate possible The Equidistant Channel represents an inclined trading range with the lines connecting the highest and lowest prices. Building . Moving along the chart, the price forms highest and lowest points that can form trend channel. To build equidistant channel, you need: - Determine direction of Forex trend - Indicate width of channel The boundaries of this channel or corridor represent the levels of support and resistance with which the price counts. The boundaries of the channel must be parallel, because the channel is equidistant. In the FOREX market, there are three types of channels, as well as trends: upward, downward and lateral (flat). Equidistant Channel – Formation Equidistant channels are arguably the most common technical structure found in the Forex market. Not only that but they are, in my experience, one of the most lucrative to trade. As a price action trader, the amount of profit you generate over the course of your career is dependent upon your ability to identify (and successfully trade
Using Equidistant channel (ED) to trade GBPUSD for 120 pips
In this forex trading tutorial video, I talk about both equidistant channel and trendlines and why equidistant channels are more powerful than trendlines. It has to do with the fact that the forex ... Trade signals are taken when price breaks out of the upper or lower trend lines or the price channel. When combined with support/resistance methods and candlestick patterns trading price channels ... Binni Ong teaches you in mandarin how to draw equidistant channel to trade a low risk trade on GBPUSD for 120 pips。 怎么画通道并取得120pips的高利润。 If we take this trend line theory one step further and draw a parallel line at the same angle of the uptrend or downtrend, we will have created a channel. ... Both the tops and bottoms of channels ... This video is provided by Profiforex to help enhance your knowledge of Forex trading. In this section, you will learn how to make profit using various trading system. You can test these strategies ...