I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Hidden Bearish Divergences Galore!
There are a heiferload of divergences all over the charts. Unfortunately, due to the FOMC meeting minutes being released tomorrow, I'm going to be a big chicken and will not trade. Trading prior to this event is an easy way to get blown out the water. But for the fearless, I have pointed out some of the hidden bearish divergences I see along with trade ideas I would have taken if it wasn't for the Fed minutes. Check 'em out:
USD/JPY
There is hidden bearish divergence here. Price has made a lower high while the oscillator has made a higher high. A good sign of trend continuation. And the trend is down.
A trade idea would be to short at market price. Place stop above resistance at 116.50. Target 112.00.
EUR/USD
Another example of hidden bearish divergence. Price has made a lower high while the oscillator has made a higher high.
A possible trade would be to short at market. Place stop above resistance at 1.3675. Target 1.3410.
GBP/USD
Here's another divergence example. What kind? Another hidden bearish divergence of course! Once again price has made a lower high while the oscillator has made a higher high.
This trade is a biggie if it won (or lost). Short now. Place stop above resistance above 2.0200. That's a pretty big stop. Target 1.9685. That's big money.
AUD/USD
Surprise surprise, yet another hidden bearish divergence!
This trade idea I like the best due to the recent shooting star. I like shorting at market. Place stop above the shooting star high and psychological resistance of 0.8300. Target 0.8000.
