Flag patterns, Pennants, Ledges

Continuation Trading Chart Patterns

Trading Flag patterns, Pennants and Ledges

EUR/USD

4 hour  Chart Pattern/ Analysis

 continued its downtrend today in the beginning of the European trading session with the triggering of the Head and Shoulders pattern on the 5 min chart, which occurred at the daily R1 and the 20 SMA on the 4 hour chart after clearing the stops above the consolidation high.

On the 5 min chart we see many Continuation chart patterns (Flag patterns, Pennants, Ledges - see green circles), which got triggered and market resumed its downward trend. Very often the EUR/USD made attempts to renew its downtrend with the beginning of the new trading hour for a true or false break of support, frequently after closing at support level  e.g. 8 a.m., 9 a.m. 11 a.m. 1 p.m. and vise versa for the uptrend at 3 p.m. and 5 p.m. (see red circles on hourly chart - Breakout Timing).
The Consolidation pattern between 11 a.m. and 12:20 p.m. GMT can be seen as a bear flag of the recent impulsive downward move from 10 a.m. to 11 a.m. (5 min chart).

The daily Pivot point changed its role from support to resistance after the break of this level 8:45 a.m. (see 5 min chart).

The Euro found some support at the Fibonacci Cluster at around 1.2692, the 61.80 % Fibonacci Extension of the recent 4-hour swing down and the 100 % Fibonacci Extension level on the 5 min chart. From there, market leveled off.

1 hour Continuation Chart Patterns Analysis

5 min Continuation Chart Patterns (Flag patterns, Pennants, Ledges)

 

Trading Gartley patterns

The Gartley Chart pattern 

Euro US Dollar Trading Strategies

Euro Us Dollar

 reversed down yesterday starting from the daily 10 SMA and closed at the important daily support level from the September 10th low. The closing of a bearish candle at support increases the chance of a true or false breakout through the support level vice versa with the starting of the new candle, which has happened with today's daily candle. These breakout timing strategies are marked with a red ellipse/circle on the charts. 

Market continued its current downtrend in today's European session after the termination of the consolidation pattern on the hourly chart, which consists of the typical three swings. The EURO made a fresh new low at the 61.80 % fib extension from the recent daily swing down and market created a kind of hammer pattern, leading to a new consolidation.

On the 5 min chart we see that the weekly pivot, the 200 SMA and particularly the low of September 10th, which changed from a support to a resistance level due to the recent breach, provided resistance throughout the trading session. The red arrows show the stop clearing/ stop fishing, where market only temporarily broke important pivot points to clear the stops before reversing. 

The green ellipses/ circles show consolidation patterns. On the 5 min chart there were two interesting consolidation patterns, a bull and a bear flag. The orange arrows show that the price zone of the consolidation patterns often provide some support/resistance when price moves back into this zone for the first time. Furthermore, fibonacci levels helped to find potential reversing points.

Daily Gartley Chart pattern

1 hour Euro US Dollar trading strategies

5 min Euro US Dollar trading strategies