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SHIB Retests Triangle Support as Pressure Mounts🔥 CRYPTOCAP:SHIB is locked into a key zone on the daily chart — price is retesting the base of a descending triangle structure 🛡️
So far, support is holding, but the range is tightening. A strong bounce here could kick off a recovery move 📈
⚠️ On the flip side, a breakdown would confirm bearish continuation and shift momentum to the downside.
👀 This is a must-watch level — clean structure, high stakes.
Do you see SHIB bouncing from here or breaking below?
Not financial advice.
Fibonacci Arcs in Stock TradingFibonacci Arcs in Stock Trading
Fibonacci arcs, derived from the renowned Fibonacci sequence, offer a compelling blend of technical analysis and market psychology for traders. By mapping potential support and resistance areas through arcs drawn on stock charts, these tools provide insights into future price movements. This article delves into the practical applications of Fibonacci arcs in trading, their interplay with market psychology, and best practices for effective use.
Understanding Fibonacci Arcs
The Fibonacci arc indicator is a unique tool in technical analysis derived from the famed Fibonacci sequence. It’s crafted by drawing arcs at the key Fibonacci retracement levels - 38.2%, 50%, and 61.8% - from a high to a low point on a stock chart. Each curve represents potential support or resistance areas, offering insights into the stock’s future movements.
The art of arc reading, meaning interpreting these curves, is crucial for traders. When a stock approaches or intersects with an arc, it reflects a significant reaction level. For instance, if a stock price touches or nears an arc, it could face arc resistance, indicating a potential halt or reversal in its trend.
Applying Fibonacci Arcs in Trading
In the stock market, these arcs serve as a guide for traders seeking to anticipate future price movements. When applied correctly, they can provide critical insights into potential support and resistance levels. Here's a step-by-step look at how you may use them effectively:
- Identifying High and Low Points: Begin by selecting a significant high and low point on the stock's chart. In an uptrend, it’s the most recent swing high to a previous swing low, and vice versa. These are the anchor points.
- Drawing the Arcs: Once the points are selected, draw the arcs at the Fibonacci retracement levels of 38.2%, 50%, and 61.8%. They radiate from the chosen low point to the high point (or vice versa), cutting across the chart.
- Interpretation: Watch how the stock interacts with these lines. When the price approaches an arc, it might encounter resistance or support, signalling a potential change in trend or continuation.
- Timing Entries and Exits: Traders can use the arcs in the stock market as a tool to time their trading decisions. For instance, a bounce could be a signal to enter a trade, whereas the price breaking through might suggest it's time to exit.
Fibonacci Arcs and Market Psychology
The effectiveness of Fibonacci arcs in trading is deeply intertwined with market psychology. They tap into the collective mindset of traders, who often react predictably to certain price levels. The Fibonacci sequence, underlying this tool, is not just a mathematical concept but also a representation of natural patterns and human behaviour.
When a stock nears a curve, traders anticipate a reaction, often leading to a self-fulfilling prophecy. If many traders make an arc stock forecast, they might sell as the price approaches a certain point, causing the anticipated resistance to materialise. Similarly, seeing support at an arc can trigger buying, reinforcing the tool’s power.
This psychological aspect makes Fibonacci arcs more than just technical tools. They are reflections of the collective expectations and actions of market participants, turning abstract mathematical concepts into practical indicators of market sentiment and potential movements.
Best Practices
Incorporating Fibonacci arcs into trading strategies involves nuanced techniques for better accuracy and efficacy. Here are some best practices typically followed:
- Complementary Tools: Traders often pair this tool with other indicators like moving averages or RSI for a more robust analysis.
- Accurate Highs and Lows: It's best to carefully select the significant high and low points, as the effectiveness of the curves largely depends on these choices.
- Context Consideration: Understanding the broader market context is crucial. Traders usually use Fibonacci arcs in conjunction with fundamental factors to validate their analysis.
- Watch for Confluence: Identifying areas where Fibonacci levels converge with other technical signals can provide stronger trade setups.
- Practice Patience: Traders typically avoid making hasty decisions based solely on Fibonacci levels. It's usually better to wait to see additional confirmation from the price action.
Advantages and Limitations of Fibonacci Arcs
Fibonacci arcs are a popular tool in technical analysis, offering distinct advantages and some limitations in analysing stock movements. Understanding these can help traders leverage the tool more effectively.
Advantages
- Intuitive Nature: The Fibonacci sequence is a natural pattern, making the tool intuitive for traders to understand and apply.
- Dynamic Support and Resistance Levels: They provide dynamic levels of support and resistance, unlike static lines, adapting to changing market conditions.
- Versatility: Effective in various market conditions, the arcs can be used in both trending and sideways markets.
Limitations
- Subjectivity in Selection: The effectiveness largely depends on correctly identifying the significant high and low points, which can be subjective.
- Potential False Signals: Like all technical tools, they can generate false signals, especially in highly volatile markets.
- Requires Complementary Analysis: To maximise effectiveness, these curves are usually used alongside other technical indicators, as they are not infallible on their own.
The Bottom Line
Fibonacci arcs are invaluable tools in stock analysis, providing insights into market trends and potential price movements.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Hood 5th wave looks toppyHood is one of my larger holdings and I have been riding the wave waiting for a pullback for months. I believe the time is now. This is chart I posted elsewhere that I forgot to share here. I think 65$ is a real possibility. The last four pullbacks were all over 40%. Not the stochastic monthly is starting divergence and the BBWP has remained elevated for a long time.
My plan:
Sit on my shares.
Close my covered calls into 2027 if we dump a lot
Buy zone between 65-75$
SPX500 Hits New Highs but Fed Caution Limits MomentumSPX500 Overview
Market Context:
The Fed's reluctance to commit to a rate cut in the upcoming September meeting has forced markets to reassess their outlook. This hesitation pushed Treasury yields and the US dollar higher in late trading, weighing on equities.
As it stands, the probability of a rate cut appears to be pushed further out on the timeline, introducing short-term headwinds for risk assets.
Technical Outlook:
SPX500 printed a new all-time high and maintains bullish momentum after stabilizing above the previous ATH at 6427. As long as the price holds above this level, the bullish continuation toward 6454 remains likely, with a further extension to 6480 possible.
A bearish correction would only be confirmed by a break below 6415.
Resistance Levels: 6454, 6480
Support Levels: 6415, 6389
SHORT | Gold | 4H Chart Direction: Bearish
Moving Average: Blue < Red
Pattern Impulse: Impulse correction
Fib Retracement: 38.2
MACD > 0
1st Target = 3302
2nd Target = 3290
Lots: 0.02
RISK: Economic instability still begs the question around whether commodities continue higher over the coming months.
Trade 1/20
0721 Impact of Japanese Senate Elections on Yen Exchange Rate Hello traders,
1. I spent the entire weekend following the Japanese Senate elections, as they will determine the fluctuations of the world's largest financing currency—the yen exchange rate.
★ The results are out, and we are currently in scenario two— the ruling coalition suffered a crushing defeat + Shigeru Ishiba refuses to resign. However, senior figures within the Liberal Democratic Party, such as Taro Aso, have publicly stated that they intend to demand Prime Minister Ishiba's resignation for accountability, increasing the pressure on Ishiba to step down. This means we might see "scenario three"—the USD/JPY exchange rate could potentially break through the 151-155 range.
★ Is this the worst-case scenario? Of course not. The worst-case scenario would be if the "far-right party" that campaigned on the slogan "Japan First" achieved a landslide victory in this election. The most notable winner is a marginal far-right party known as the "Reform Party."
The Reform Party originated from a YouTube channel during the pandemic, which spread conspiracy theories about vaccines and "global elite conspiracies." NHK estimates that the Reform Party will win up to 22 seats, whereas three years ago, they had only 1 seat in the Senate and currently have only 3 seats in the House of Representatives.
✔ Let's take a look at this big winner's political proposals—stricter immigration restrictions + opposition to globalism + opposition to radical gender policies + reassessment of decarbonization and vaccine policies + massive tax cuts + increased social welfare spending. This means Japan may implement more "radical tax cuts" combined with aggressive economic stimulus through quantitative easing, leading to a more severe depreciation of the yen, increasing the likelihood of the USD/JPY exchange rate rising to the 160 range.
★ What are the risks of a sharp depreciation of the yen?
For Asia, the depreciation of the yen typically drags down other Asian currencies collectively, especially under U.S. tariff pressures, where Asian currencies are already under devaluation pressure. A strong depreciation of the yen would mean Japan is taking other Asian countries along with it off a cliff. We need to pay attention to the "passive" depreciation of the renminbi.
Asia will feel the pain, but Europe and the U.S. will also suffer. Theoretically, if the USD/JPY exchange rate surges (indicating a sharp depreciation of the yen), it is very advantageous for arbitrage trading with leverage (because the yen becomes cheaper). However, when the yen experiences a severe depreciation, the situation changes.
Let me give you a classic example: After Shinzo Abe returned to power at the end of 2012, he launched the "three arrows" economic policy: unlimited quantitative easing monetary policy + fiscal stimulus + structural reform = artificially lowering the yen exchange rate to stimulate exports (the clear goal was to increase the USD/JPY exchange rate) = rapid depreciation of the yen (from 80 in 2012 to 125 in 2015).
So what happened then? — A large number of Japanese institutions sold off U.S. bonds, European bonds, and REITs to cash out. The reason is simple:
✔ Japanese financial institutions (such as GPIF, insurance companies, and banks) hold a large amount of dollar/euro assets. When the yen depreciates, the yen-denominated market value of these foreign currency assets skyrockets. Selling off overseas assets is equivalent to cashing out foreign exchange gains in advance.
✔ The proportion of foreign currency assets is too high → must rebalance. Due to the yen depreciation, a large institution that originally allocated 20% of its total assets to foreign currency assets might see that proportion swell to 30% or 40%. This triggers asset allocation restrictions within pension and insurance funds (ALM principles), necessitating the sale of overseas assets and reallocation to yen-denominated assets.
✔ The yen depreciation phase is usually accompanied by an expansion of the U.S.-Japan interest rate differential. If Japanese institutions hedge their dollar assets, the hedging costs become very high (the costs of hedging through FX swaps and forwards rise), so they must also sell off some assets to reduce exposure. Therefore, in 2013, there was a collective sell-off of U.S. and European bonds.
Technically:
Daily chart, there is a possible Crab Harmonic Pattern.
The Crab Harmonic Pattern
From the chart, we can see:
The upward move from A to B is labeled as 0.762, which falls within the Fibonacci ratio range of 0.618-0.786 for the A-B leg of the Crab pattern.
The downward move from B to C is labeled as 0.668, which also falls within the Fibonacci ratio range of 0.382-0.886 for the B-C leg of the Crab pattern.
The upward move from C to D is labeled as 1.112, which corresponds to the Fibonacci ratio range of 1.13-1.272 for the C-D leg of the Crab pattern.
Based on these Fibonacci ratio relationships, we can identify this price action pattern as a typical Crab harmonic pattern. This type of pattern often suggests that the price may be about to reverse.
On the left 4H chart, the broken trendline is suggesting a new possible downtrend to begin .
Make a good use of those support positions, sellers of UJ could find a great trade deal.
Follow me to get more update on UJ.
GOOD LUCK!
LESS IS MORE!
APT - HUGE POTENTIAL (130+% SPOT) You probably forgot about this altcoin but it is justified. Downtrend since 2023 and lower highs, lower lows but....
If we look more close and use tool fixed price volume we can see that price is above VAL (Value area low), we had break through but price returns..Also good reaction of FVG (Fair value gap).
Now, we can try buy this coin and have some stop lose. Price is in range 172 days and all people forget abut this coin. Analysis is right only if we close daily candlestick about 6$.
Stop lose can be below 4.4$ which is 6-7% of losing.
Second entry is monthly level at 3.3 and stop lose should be below the lowest low 3$.
For me is great opportunity because risk reward is excellent.
Ivan
EURCHF – Bearish Channel Holds Firm, CHF Strength Set to ResumeEURCHF just tapped into the descending channel resistance again and is showing signs of rejecting. I'm expecting a bearish continuation here, especially given the strong CHF momentum recently, supported by safe-haven flows and Swiss inflation stability. If the pair fails to break above 0.9340, I’m watching for a downside push back toward 0.9270–0.9265, completing another leg within the structure.
🔍 Technical Setup (4H):
Channel Structure: EURCHF remains firmly within a downward-sloping parallel channel since mid-June.
Resistance Rejection: Price recently tested upper channel resistance (~0.9335–0.9340 zone), aligning with trendline rejection.
Target Support: 0.9270–0.9265 (channel base and key horizontal level).
Confluence: CHFJPY overlay (pink line) is rising again, suggesting renewed CHF strength—this usually weighs on EURCHF.
💡 Fundamental Insight:
EUR Side:
ECB officials remain cautious, but with recent EU data showing weaker growth (especially PMIs and sentiment), euro upside is capped.
The ECB is likely to pause further tightening, while other central banks like SNB remain firm on inflation risks.
CHF Strength:
The Swiss National Bank (SNB) still leans hawkish, with stable inflation giving room to hold rates steady or tighten if needed.
CHF benefits from risk-off flows amid global tariff headlines, China slowdown, and Middle East tensions.
Rising CHFJPY = clear CHF strength across the board.
⚠️ Risks:
If eurozone data surprises to the upside (e.g., inflation rebounds), EURCHF could break out of the channel.
A sudden drop in geopolitical tension or strong risk-on rally could weaken CHF as safe-haven demand falls.
SNB jawboning or FX intervention is always a wildcard.
🧭 Summary:
I’m bearish on EURCHF while it respects this well-defined descending channel. The technicals show consistent lower highs and lower lows, while the fundamentals continue to support CHF strength due to risk aversion, stable inflation, and a resilient SNB. My short bias is valid as long as price remains below 0.9340, with downside targets at 0.9270–0.9265. CHFJPY rising confirms franc leadership across FX markets, and EURCHF is likely a lagger following broader CHF strength.
S&P's "hugely overbought" towards 6375!1). Position Volume dropping! 2). Big institutions (Banks & Insurance) have backed off on higher Risk positions! 3). Huge resistance at .728 fib & trend! 4). Trump tariff talk is likely adding to a fall as well! 5). We're looking for a "SELL" trade @ 6375, since buying is too risky at the moment...Good Luck!
Trading the Pullback on EURJPY My Trade PlanThe EURJPY is clearly in a strong bullish trend 📈, as shown by a consistent pattern of higher highs and higher lows on the 1H timeframe ⏱️. In this video, I’m looking to capitalize on a pullback as a potential buy opportunity 🎯.
We dive into my entry strategy, explore how to align with the prevailing trend, and break down key concepts such as price action, market structure, and smart pullback zones 🧠📊.
⚠️ As always, this is for educational purposes only — not financial advice.