AAPL Still Keeping Above Monthly 10 Simple Moving Average

Apple Inc Stock Monthly Chart Showing 10 Month Simple Moving Average

Here is Apple Inc. (AAPL) monthly stock charts with a 10 Month Simple Moving Average overlaid on it. This long term strategy is simple. Buy when the candle breaks above the Moving Average, Sell when it breaks below. We only need to check at the end of each month. Looks like for this month it going to remain above the Moving Average, unless there is a massive sell-off before the month is done.

Possible Bearish Flag Spotted On EUR/USD Daily Chart

EUR/USD Daily Charts Showing A Possible Bearish Flag

Just spotted a possible Bearish Flag chart pattern (see magenta circle) forming on the Daily Chart of EUR/USD. The downward slopping channel marks out the current bearish trend. If the flag breaks downwards it will be following the big-picture trend. If it rebounds off the upper channel line it'll provide even better confluence. Target the lower channel line.

Today's Volatility Squeeze On AUD/USD 5-Minute Charts

AUD/USD 5-Minute Chart Showing Volatility Squeeze

 Here's today dose of the Volatility Squeeze Pattern on AUD/USD pair on the 5-minute chart. Note the squeezing of the Moving Averages towards the apex of the triangle and also the almost sideways small range candles before the breakout. In this example there was a prior breakout of a horizontal resistance area before price pulled back to test the former resistance as support again. A confluence of factors, which is always a good thing to have in a trade setup.

Another Volatility Squeeze Spotted On AUD/USD 5-Minute Charts

AUD/USD 5-Minute Chart Showing Volatility Squeeze

Looking at the chart above, we see once again, the Volatility Squeeze Pattern on the 5-minute charts of AUD/USD this afternoon around 1pm Singapore time. Please note the following:

1. There is an obvious pre-dominant trend, down in this case, which you can mark out using a trend line


2. There is a consolidation and pullback phase. This can be marked out using an up slopping trend line.


3. Close to the apex of the triangle, the candle range becomes small


4. The moving averages converge together into a tight squeeze (see blue circle)


5. The moving averages are all located to one side of the candles, in this case, above the candles. This gives you a clue that the breakout will be down


6. The Bollinger Band width becomes narrow (see blue circle)


7. Standby a sell order just below the up slopping trend line waiting to capture the breakout.

Falling Wedge Trade On USD/SGD 4-Hour Timeframe

Falling Wedge Trade On USD/SGD 4-Hour Chart

Just completed a trade on this pair, USD/SGD, 4-Hour timeframe. The take profit order was triggered automatically while I was asleep around 4:50am this morning. This trade was taken as a result of a Falling Wedge Chart Pattern spotted one week ago. Once it moved up the same amount as the number of pips risked for my stop loss I took my first profit, set my stop loss to break even and let the rest of my lots run to my second target. A total of 189pips for this trade.

Volatility Squeeze Again, on AUD/USD, 5 Minute Chart

Volatility Squeeze On AUD/USD 5-Minute Charts

Here's another example of a Volatility Squeeze setup. Points to note:

1. There was a prior trend, that formed throughout the day, today, which was down.


2. The candles always converge towards the apex of the triangle (See the white trendlines)


3. The Moving Averages start to converge and then spread apart. (See blue circle)

Wait for the candles to break out from the triangle to enter a trade.

In this picture also, there is a bearish flag (see red circle).

After the price broke out strongly, it consolidates for several candles, before breaking out again. You will notice that:

1. The candles during the consolidation are distinctly smaller than the high volatility candles presiding them.


2. The consolidation period is short.

This is an example of a particular form of price behaviour, that price movement alternate between periods of high volatility and low volatility. It is good practice to wait for the price to get into the low volatility mode before looking for a trade setup.

Volatility Squeeze Patterns

Some of the best trades occur when this pattern appears. It is called a Volatility Squeeze. Please refer to the picture below of the AUD/USD 5-Minute Chart.

AUD/USD 5-Minute Chart Showing Volatility Squeeze

Key elements to look out for:

1. There is a dominant trend line, usually it is longer and has a steeper angle.


2. There is shorter trend line with an angle that is less steep than the dominant trend line.


3. The two trend lines converge to form a triangle pattern.


4. Price range becomes progressively shorter as the candles approach the apex of the triangle.


5. Bollinger Band width starts to narrow as the candles move towards the apex of the triangle.


6. At least two Moving Averages (the more, the better) start to converge close to each other towards the apex of the triangle.

Wait for the candles to break out through the non-dominant trend line to enter.