Just thought I would post an observation about the performance of Bitcoin.
For the technical analysts among us, this is proof that Dow Theory doesn't just apply to stocks.
Charles Dow published some observations over a hundred years ago that linked human behaviour and financial markets.
The recent surge and subsequent fall in Bitcoins value clearly shows the...
Pennant pattern has formed on this potential pullback. The weekly time frame shows nice steady downtrend with expanding volume indicating the higher time frame has commitment of sellers to continue the downtrend.
Volume on the daily timeframe has contracted in line with a pullback forming the pennant pattern. Volume has began to expand at the end of the...
Nice developed down trend with a pullback wedge pattern forming. Volume is also contracting on the pullback indicating buying in the pullback is weakening.
Enter if price breaks below the wedge pattern. Target is the same distance from the previous pullback, unless a pivot point price action appears.
RSI made new lows whilst price continues to make new highs. This indicates buying momentum is easing.
Price is above the 20 moving average, indicating price may be pausing for a further push to the upside or reverse for a new downtrend.
If RSI breaks below the 50 line then momentum will be weighted towards a bearish move. Keep on eye on this pair.
Both countries forecast fundamentals are evenly matched therefore I'm not considering this to be a factor.
The Euro is appreciating across most other currencies whilst the Canadian dollar is mixed, therefore there is slight weight towards this pair to continue the uptrend.
From a technical perspective we have a bunch of positives. Price has pulled back...
As mentioned on previous posts, New Zealand inflation is forecast to almost double over the next 12 months putting downward pressure on the New Zealand dollar.
Most of the other major New Zealand currency pairs are weak, adding probability towards a downward move on this pair.
RSI has made a bearish divergence recently, indicating that the New Zealand dollar is...
New Zealand inflation is forecast to almost double over the next 12 months which puts downward pressure on New Zealand exchange rates.
At the moment majority of major New Zealand currencies pairs are weak, proving support for an appreciation of this pair.
RSI bullish divergence has also formed on this pair, indicating that sellers are losing momentum.
Fundaments of UK are looking good, with forecast inflation and interest rates both expected to rise over the next 12 months. These factors do influence a currency.
New Zealand fundamentals are forecast to remain fairly stagnate over the next 12 months. Obviously this could change.
Fundamentals will apply a upward pressure on this pair.
RSI has also formed a...
Recent inflation forecasts suggest Euro inflation is decreasing whilst Australia is increasing, this would suggest upward pressure on this pair.
RSI has made a recent bullish divergence signal, indicating selling of the Euro is weakening. RIS has made a new technical uptrend whilst the price has made a technical downtrend, making this signal strong. This event...
I have been watching the CAD pairs recently because of recent news about the balance of trade deficit making a record high. This is bad news for the CAD, looking at the balance of trade historically, it is trending into more deficit. The reason this is bad news is because it means Canada needs to sell more CAD dollars and buy mostly US and Euros to cover the...
RSI has made a bearish divergence on this pair indicating momentum of the recent uptrend is weakening.
RSI has made a new technical downtrend.
Recent inflation forecast show Mexico's inflation to almost halve over the next 12 months which is generally good for the currency.
Also, the interest rate differentials are massively in favour of the Peso.
The US is...
RSI is showing a bullish divergence and has made a technical uptrend. The RSI divergence is telling us the US dollar is weakening on this pair and the Kiwi is strengthening. Could this be institutions rebalancing their portfolios in anticipation of a new Kiwi uptrend?
I would wait for a pullback to a fib level in order to get a good price then enter long.
RSI bearish divergence has presented on the 12 hour time frame.
RSI has made a technical downtrend whilst price has continued to make a technical uptrend, making the divergence signal strong.
Most other Swiss currencies are appreciating which provides bearish support for a new downtrend on this pair.
Some depreciating pressure is also on other CAD pairs,...
RSI showing bullish divergence at a major support zone.
Most other AUD currencies are beginning to appreciate.
Most other USD currencies are losing upward momentum, including the dollar index.
Momentum is behind an appreciation of this pair. I am bullish.
Wait for pullback to enter long.
Exit when AUD appears to losing upward momentum.
RSI bullish divergence has occurred on this daily chart, and a new RSI uptrend confirmed.
Divergence is in an indication that supply/demand is shifting. Lira is potentially shifting from distribution to accumulation.
Other Lira's currencies are also appreciating and other Yen currencies depreciating.
Target placed at next major level of support.
Price action shows the buyers are loosing commitment to push price above the indicated resistance level for the past few weeks. The RSI is also showing divergence to the downside which means the previous buying momentum that was driving the uptrend is weakening, indicating in advance that a reversal may be looming. The other factor weighing in that will...
Daily time frame shows price within previous support zone.
Hourly time frame shows price rejected support twice and potentially third.
RSI indicator showing momentum to the upside.
Based on the double bottom pattern, support area and RSI I am biased to the upside.
Strong uptrend over the previous 4 trading days. Volume recently stagnating indicating buyers may be losing momentum. Price is at a previous significant resistance area. A double top chart pattern has formed on the 2 hour chart time frame indicating the buyers may be losing momentum. I am biased towards a down move.