Market Update 19/06/2021, Price Structural Failure
Welcome traders. This is the market update video for the week ending July 2, 2021. What a summer it has been. In some markets, we have been threatening all-time highs. In fact, the s&p500 US stock market index is at all-time highs, while other markets have backed off that, but still have found good support. But before we jump into the markets as a whole. This week, we’re going to look at another variation of a trend, establishing breakout, because remember the first video that I had done a few weeks ago, we had looked at the question, what establishes a trend. What establishes a trend and the variation that we were looking into at that point was an established trend breakout, so a real quick recap of what an established trend breakout was. We have a swing high, a swing low, we have a new swing high, which takes out the previous swing high. We have a swing low, that does not take out the previous swing low, and the price takes out the previous swing high, establishing a trend in this direction. So that is what an established trend breakout was, this is what we covered a few videos ago, so today we’re going to look at the second and final variation of a trend, establishing breakout. And this one is called two or more price structural failures. So again this is the second and final variation of a trend established in breakout. And let’s jump into it.
So here’s how it looks like. Again we have the same setup as an established trend breakout, we have a swing high a swing low, a higher high, and a higher low. If I can draw this properly I mean have a higher low here. Then, what we have here is another higher high. And this time, the market takes out the previous two swing lows, the market takes out the previous two swing lows. This is a pretty steep drop, isn’t it. I’m going to erase this, and what would more realistically happen is we have these two levels, got taken out by this lower low potentially signaling a turning point, and a downtrend, but now what happens is the previous higher high gets immediately taken out, signaling that we are continuing on the original trend, establishing that breakout. So, we have a lower low, taking out the previous two swing lows. And then we have a higher high. That takes out the previous swing highs, establishing this trend to the upside and continuing this trend. So let’s do this with a down-trending market.
So we have a swing low swing high lower low, lower high. And we have, again, another lower low. This time we take out the previous two swing highs. But immediately after we establish the trend by taking out the previous two swing lows. Continuing in the established trend to the downside. So this signals that there are two price structural failures, which establish the current trend.
So let’s take a look at how this looks in the market, shall we? So, this is an excellent example of this, working in the markets. So we’re looking at the Euro USD here from last fall. So looking at this swing low we have a swing high, we have a higher low, we have a higher high. And then we have a swing low that takes out the previous two levels. And then we have a swing high, which establishes the trend to the upside. And so this again is called two or more price structural failures variation six. Take a look and see if you can spot this pattern happening in real-time in the markets, where there is a break, whereas weather is a price structural failure. But then immediately after the trend continues in the direction that it was originally. So that’s the variation topic for today.
Let’s jump into the market updates, shall we? So first, let’s move to the current day for the Euro USD. So where are we with this, we had entered short? Earlier this week, and we move the stop loss to 1.1914 right around here, and we’re going to continue to take this short until we get a signal to exit. There is diminishing away to the downside. But this is a good trade that we have entered so far. The Euro USD dollar franc. Swing Low was confirmed late last week, but no trigger as of yet to enter long. Even though there is plenty of OE to the upside. Next Pound Dollar. There was a swing high, that was confirmed in early June. Even though it was still in the accumulation phase. After a few, few days, it did have that big move to the downside. It found some support at this level retraced a little bit, and is continuing to explore more price to the bottom, no trade as of yet though for the Pound Dollar. Next, let’s go to the dollar-yen. And here we have been in the continued uptrend, since late May. We are hitting the march resistance levels. And it’s gonna be very interesting to see what it does from here if it breaks through this resistance level, or has to go further down to pick up more buyers before it breaks through. Next, the Aussie dollar. We had entered short. And we are now trailing this trade at the high of this bar. And so we’re going to take a look at this early next week, actually on Sunday on our live trading room to see if we can continue to take advantage of this trade if it moves to the downside, or whether we’re going to be stopped up.
Next, the Euro Yen. We had closed a long position that we had entered, and we had taken two trades. Trade from last week we had closed a long position, and this week we have entered a short position with a trailing stop. And it is finding some support. But there is definitely some OE to the downside.
Next, moving to the footsie. We had a steep drop largest drop in a month, finding some support in this area, and a higher high, so it’s gonna be interesting to see how it reacts if the price does hit this resistance level that it bounced off of very precipitously earlier this month, so we’re gonna be keeping a close eye out on the footsie.
Next, the Dow US average. Again, threatening the all-time highs moved very well off of the lows, we had a swing low confirmed for earlier this month. So again, keeping a close eye on this to see if there’s an opportunity for us to take this trade to the upside. Next, let’s take a look at oil. It is pumping it is going, and no entry as of yet, but very bullish on oil since late May, so for over six weeks, it has been, other than a couple of days, where there were some red bars. In fact, this one, we had two red bars, otherwise, very bullish. Coffee we are in a compression face since hitting some highs in late May, no trade as of yet for coffee.
Next we move to gold-backed off some highs from the previous last year-plus, finding some support in this area, or on the 1760 1775 80 areas, very interesting to see how it will move from here, definitely in an accumulation phase, we’re going to be keeping a close eye out on gold and silver as well, which reacted very similarly to gold. So we’re going to be taking a look at, if there are any trade opportunities for us to enter this actually silver, we were stopped out on a short, as it’s finding some good support at the 25.6 area. So that’s it for the market update. Let’s pull up the trade performance for this past week.
So, here we go. No trade for the primary runners in the live trading room. Liftoff 3.2 with 20% OE a slight loss negative, negative point five 3% Liftoff 70% Ovi negative point 2% cash and 4.0 TSL primary negative 1% cash and 4.01-day exit negative point 8.87%. So over a total loss of negative 2.6% If you had entered all those trades with us. Next is the MTM elite room. No trades, other than in the cash and 4.0 100 pips strategy that yielded 8.4%. Overall, so overall for the MTM elite room we had point 4% So, as we say here our strategies are built to perform over the long term so stick with it. And there are going to be days where you’re going to have some drawdowns but at the end of the day. At the end of the few weeks at the end of a few months, you’re definitely going to see those returns. So stick with it, guys. Hope you learned something new today, excited to continue to grow this team continues to test out new strategies, and provide them for you guys. So thank you all for tuning in. Over and out.