Yesterday I showed a valid short trade setup with a Stop Loss and a Profit target. Today EURUSD moved above my stop loss price during the day stopping out this trade setup with a small loss. This is an example illustrating that not all valid trade setups will work. Nothing is guaranteed in trading there are only probabilities that trade setups will work. As...
EURUSD Daily TF - EURUSD is at resistance. Yesterdays' candle had a small body indicating buyers are weak and unwilling to breakout above resistance. If todays' candle closes below the low you yesterdays' candle that will indicate the sellers are taking control of the market. Further, this would then be a valid signal to Short this market!
An upward trend is identified by a series of higher highs and higher lows. A downward trend is identified by a series of lower highs and lower lows. As long as the series continues the trend will remain intact. A simple way to identify a trend is by placing a plus sign or some other symbol on the chart as shown. Once the series is interrupted the trend is then...
There are many ways to measure the strength of currency pairs. One such way is to use the RSI indicator and compare the strength of one currency pair versus another. Another way might be to use Stochastic to determine which currency pair is overbought/oversold compared to another. I don't measure the strength of one currency pair versus another I measure the...
PUTTING IT ALL TOGETHER ======================= Window 1 shows the yearly candlesticks. Here I can see the long term trend is down. I can also see the real body of the 2019 candle is bearish (red) and is completely below the long term swing level at 77.217. This exposes the next lower support level at 66.19. I also know that it will take a new yearly candle,...
Chart Setup - After I have analyzed this market on the monthly chart I move to the daily chart. The daily chart shows the monthly pivot points. Looking back at the monthly chart for a moment, in a downward trend it is expected that the monthly candle continue to make lower highs and lower lows. With this thought in mind let's now go back to our daily chart and...
After I have plotted all the swing levels on the yearly chart I move to the monthly chart. Chart setup: On the monthly chart I show the yearly pivot points. These pivot points are plotted on the chart from the beginning of the year to the end of the year. I also drawn in any swing levels from the yearly chart that pass through or are close the the yearly pivot...
Long Term Outlook : Downward trend Analysis: NZDUSD started the month below pivot point "P" indicating a bearish bias. "When the market is below the pivot point "P" Floor Traders are "Sellers" and not "Buyers"." Price has now moved up to pivot point "P" closing above "P" but leaving an upper shadow. This upper shadow indicates price is rejecting higher...
AUDCAD DAILY CHART Chart setup: Chart shows monthly pivot points in blue. Analysis: AUDCAD opened the month below the monthly pivot point "P" indicating a bearish market environment. This pair moved up to monthly pivot point "P" where it ran into resistance. Daily candle then printed a Bearish engulfing candle on the chart indicating a bearish trend setup. ...
GBPCHF 60 MINUTE CHART - PAIR'S DAILY MOVE IS DONE! Chart Description - Thick horizontal blue line is the monthly pivot point "P" showing the true value of price for the month. The thin horizontal blue line is the monthly pivot point "R1". The red horizontal lines are yesterday and today's daily pivot points. Analysis - Yesterday saw a news event come out...
GBPCHF HOURLY CHART ==================== This chart is an hourly chart showing today's pivot points. Pivot point "P" represents the true value of GBPCHF for today. Pivot point "S1" and "S2" represents levels of support and pivot points "R1" and "R2" levels of resistance. In a market where there is low volume buying and selling price usually never moves below...
I start my analysis of each of the 22 currency pairs I trade by looking at the yearly chart. What? The yearly chart! Why? Because it is here that I find the most important swing levels. OK! OK! What is a "Swing Level?" A swing level is an important price level on the chart where traders make trade decisions. If there are more buyers than sellers at a swing...
EURUSD WEEKLY CHART ANALYSIS ============================ I am not a position trader, I am a swing trader trading the daily and 4 hour time frames. However, I do believe in trading in the direction of the major trend. To determine the direction of the major trend I will often look at the monthly or yearly pivot points . In this chart I am looking at the yearly...
This pair is in a major downward trend. The rally staring first of October is counter-trend. The chart shows monthly floor trader pivot points . Price has broken about pivot point "P" indicating a bullish bias. Price has run into some resistance (see previous two candles with long upper shadows. I have drawn a short red resistance line above these shadows. A...
This pair is in a major downward trend. The rally staring first of October is counter-trend. The chart shows monthly floor trader pivot points . Price has broken about pivot point "P" indicating a bullish bias. Price has run into some resistance (see previous two candles with long upper shadows. I have drawn a short red resistance line above these shadows. A...
This pair is in a major downward trend. The rally staring first of October is counter-trend. The chart shows monthly floor trader pivot points. Price has broken about pivot point "P" indicating a bullish bias. Price has run into some resistance (see previous two candles with long upper shadows. I have drawn a short red resistance line above these shadows. A...
EURUSD WEEKLY PRICE ACTION AS OF FRIDAY 03/31/2017 TWO COMPLIMENTARY ANALYSES THIS WEEK First analysis analyzes the rally from mid February to current week. Second analysis analyzes the up trend starting late December 2016. First Analysis: 1. Latest weekly candle failed to make a higher high (HH) and a higher Low (HL) to indicate the continuation of the...
The U.S. Dollar Index continues to move between the upper and lower tines of the Andrew's Pitchfork. The target price for the Index is 108 between April and June (See link for method used to determine target price). As long as the Index continues to move between the upper and lower tines of the pitchfork the analysis remains intact.