After having defined the major support and major resistance lines on the monthly chart, and noting the major trend is upward, I have moved to the 1 hour chart to look for a Long trade setup. On the 1 hour chart I noticed price has been in a trading range to the last 4 hours. I also notice price is above the 10 and 20 EMA's indicating price is bullish. I have...
Price has moved down to within 9 pips of my target price. However, I see price starting to make lower candle wicks indicating price is starting to reject lower prices. It is still possible for price to continue lower to hit the Take Profit target but the probability is now increasing whereby price could reverse back upward to relieve a possible oversold...
Price has bounced off major resistance and is now working its way to test major support. The last four months price action has been counter-trend. As soon as the counter-trend (corrective) move is complete price should continue lower to test major support. The next thing I do in my analysis is to move to the daily or 4 hour time frame to look for trade...
Price has bounced off major support and is now working its way to test major resistance. The latest monthly candle indicates price is in a corrective mode. Once the correction is complete price should continue to move upward. The next thing I do in my analysis is to move to the daily or 4 hour time frame to look for trade setups. Note: GBPUSD is one of the 10...
If you have gone through the commentary on the last 7 currency pairs I have analyzed and published this weekend you should have a good understanding of how I analyzed this currency pair. This currency pair is in a major trading range and is moving between major support and major resistance. This currency has last bounced off major support and is now headed to...
There exists an 80-20% rule that says 80% of the time the markets are grinding through trading ranges, pullbacks, and other counter-trend action that tests boundaries and only 20% of the time the markets are actually trending. Goodle "Are you a trend trader or a swing trader" and follow the 80 - 20% rule links for more information. In analyzing the markets over...
This chart shows the major support and major resistance lines as I have placed them. There will always be some controversy when it comes to placing support and resistance lines as well as trend lines. Some traders will say you should have put them here or you should have put them there. Everyone has their own opinion and they may all be correct. The point is...
This currency pair is in a trading range between major support and major resistance. When a currency pair is trading in a trading range I realize it will continue to move between major support and major resistance until trading psychology changes and price breaks out of the trading range. Notice the red ovals. These red ovals are highlighting the tall upper...
The first thing I do when analyzing the currency pairs I trade is to look at the monthly time frame over the last 3 to 4 years. In the chart I see price action is moving between major horizontal support to major horizontal resistance. It is normal for price action to move between support and resistance and back again when a market is in a long term trading...
The first thing I do when analyzing the currency pairs I trade is to us a top down analysis methodology. So to start my analysis I use the monthly chart as shown above. When I do my monthly analysis I open up the chart to show all monthly candles from the current monthly candle and look back to the monthly candles as far back as 3 or 4 years. What I am...
This pair is in a major upward trend. Price action is bound within a trading channel. Latest rally has moved up from the lower channel line to the upper channel line. Last candle rejected higher prices near the upper channel line as indicated by the long upper wick and closed at the low for the session. Further this candle engulfed the previous candle a...
GBPNZD MONTHLY CHART - Reversal pattern! This pair should move lower over next few months to test Major Support!
Candles have found Intermediate Support in confluence with support from the 20 EMA. Notice 2 Doji formed at support. Latest candle was a tall green candle. This candle opened right at support and has moved higher closing near its high of the session and closing above both Doji. This candle is called a rejection candle as it is rejecting lower prices. This...
This is a very simplified version of my trading plan including an example of how the strategy works with a small trading account.
Price has bounced off a Swing Level as indicated by the Rejection Candle. A rejection candle printed at aSwing Level is a good indication a trade reversal downward is beginning. A bounce off a Swing Level is a good spot to enter a Short trade. I have placed my Entry 2 pips below the low of the rejection candle. I want to make sure price makes a new lower low...
The US Dollar has been making lower lows and lower lows indicating a downward trend. However since Dec 12 the dollar has been moving upward. The question is will it make a new higher high to end the downward trend or will it post a new lower low to keep the downward trend in motion? To answer this question I look to the currency strength indicator below the...
Price has bounced off Intermediate Support as indicated by the Rejection Candle. A rejection candle printed at a support line is a good indication a trade reversal upward is beginning. This is a good spot to enter a long trade. I have placed my Entry 2 pips above the high of the candle preceding the rejection candle. I want to make sure price makes a new...
Daily chart shows price moving between Support and Resistance. Notice the 2 Doji. The Rejection Candle has closed below the low of the 2 Doji indicating price is ready to move lower. This is also a signal to enter a Short Trade. I will be entering this market on the Open with a market order. Stop Loss is placed 2 pips above the high of the rejection candle. ...