Want FULL ACCESS To ROSS’ DAILY TRADE ROOM? Simply Click The Get Started Button Right Now! Trade posted at 8:30am ET buy GBPUSD at 1.6256. This pair has been falling for a few days now since testing the 1.6700 highs. The daily trend line has been well established for the year and it is now…
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There is a difference between potential trend change and actual trend change. Potential trend change tells you that there is a strong likelihood that the trend could change, actual trend change tells you that the trend has already changed and would be the focus of your attention. In my last two commentaries I spoke about identifying the trend and identifying actual trend change. So now let’s focus on potential trend change.
So, how do you tell them apart? That is what we use technical analysis for!
There are many indicators that point to potential trend change, or instance, candlestick formations. Candlestick formations are a single candle identifier of potential trend change. Formations such as the Hanging Man, Shooting Star or Engulfing candle could point to a possible shift from
Hello everyone, I was looking at Forex broker reviews the other day and I noticed that hardly any of the brokers that had been around for any length of time had an overall positive ranking. And I am fed up with it!!! My question for you is what are you looking for in a Forex…
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A few weeks ago I wrote about methods of identifying the trend. The trend, defined as the overall general direction a currency pairs price is moving. We have all heard the saying “the trend is your friend”, however, trends do and will change…..eventually. But how can you identify those moments at or near the beginning of the change without waiting weeks or even months only to look back and say “I wish I knew the trend was changing back then”.
There are a lot of ways of identifying momentum shift or overbought and oversold conditions, but I want to focus in on how to actually visually identify that change is taking place.
First, there are the candlestick formations. These are a single identifier that a potential shift in buyers and sellers are taking place. These can be a great beginning clue to trend change. For example a Shooting Star tells us that the buyers are losing ground and the sellers are gaining momentum. Or it could be a hammer that tells us that the sellers may be losing their hold on a currency pair. These in my opinion are just the beginning.
Then you have chart patterns. These are typically made up of multiple candlesticks forming an identifying pattern of reversal. Patterns such as the Double Top or the Head and Shoulders inform us of an impending fall at the top of an uptrend. These again are a good beginning clue to trend change at or before the trend has actually changed.
Both of these identifiers are a clue that change is probable but has not yet occurred.
So, how do you know then that trend change is actually happening? Go back to the basics! An uptrend can be identified as having higher highs and higher lows and a downtrend has lower highs and lower lows. It’s that simple!
I want to provide a few examples of this simple yet effective method of identifying trend change and potential entry points at or near the beginning of the change.
Let’s start with the GBPUSD on April 11th (see chart below). For some
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Convergence of Indicators
Often times, when you can identify a level, where multiple indicators point to a certain outcome there can be a higher probability of that outcome, which is the case of the GBPUSD today.
This morning we can see at 1.6235/40 that there are 4 different indicators pointing to a price barrier, or what I like to refer to as a wall. First the trend line from the
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Potential long term technical setup has begun to take shape on the USDCAD. It is no secret that the trend for the USDCAD has been down for quite a while. Recently it has tested support into the mid .9600’s and has rebounded back into the .9800’s. This rebound has been challenging the daily trend line and gives us the first clue that the trend just might be changing.
Along with the challenge of the trend line comes the break of former support in the .9850 area. As you can see from the chart example, the break of the
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The Daily Trader update provides technical analysis of major currency pairs and forex market conditions at the time of the post. The support and resistance levels posted and current market price could be dramatically different from what you are seeing at the moment.
EUR/USD – Current 1.4000
Overview – Daily trend has been pressing higher since the beginning of 2011. However, previous congestion viewed on the weekly chart between 1.3950 and 1.4100 in 2008, 2009 and 2010 is providing a range of resistance that could eventually indicate a reversal zone. As long as this pair holds under 1.4100 I will be watching for technical indications of reversal.
Resistance – 1.4085 / 1.4150 / 1.4225 / 1.4290
Support – 1.3900 / 1.3860 / 1.3825 / 1.3760
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GBP/USD – Current 1.6175
Overview – Weekly resistance viewed in the mid to upper
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The Daily Trader update provides technical analysis of major currency pairs and forex market conditions at the time of the post. The support and resistance levels posted and current market price could be dramatically different from what you are seeing at the moment.
EUR/USD – Current 1.3665
Overview – Last week we saw a push back to the 1.3700 area capping just under the previous weeks high. As long as it continues to hold under 1.3740 will be looking for the potential return back down to 1.3400. A push through 1.3740 will retest the 1.3850’s then back to 1.4000.
Resistance – 1.3708 / 1.3740 / 1.3790 / 1.3824 / 1.3858
Support – 1.3640 / 1.3620 / 1.3574 / 1.3547 / 1.3500 / 1.3460
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GBP/USD – Current 1.6216
Overview – I have been watching the test of the top of
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This week we saw two currency pairs set up with just about perfect reversal chart patterns. I will outline it here on the EURUSD but you should look on the AUDUSD for it on the Daily chart.
A head and shoulders pattern consists of 3 peak highs, the left shoulder, the head and the right shoulder. The left shoulder is established when
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Forex Trading Using Inter-market Analysis
This book explains the general dynamics of the exchange market, which is considered to be the world’s largest and the most widely traded financial market. It also provides information on the application of inter-market analysis to the Forex market. This book equips you with the knowledge that will help you understand and anticipate the changes in the trends and directions, and take actions accordingly. You will learn the influences that other markets have on the Forex market. It also lays emphasis on how all the various financial markets have become interconnected, and how they affect each other in today’s global economy.
Day Trading the Currency Market
This book has the distinction of having been recommended by few of the top most traders of the Forex market. It is known for its
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The Daily Trader update provides technical analysis of major currency pairs and forex market conditions at the time of the post. The support and resistance levels posted and current market price could be dramatically different from what you are seeing at the moment.
EUR/USD – Current 1.3520
Overview – The past two weeks have found support in the mid 1.3500’s and a new leg down could target 1.3400 for the next support. Long terms trends on the daily and weekly are difficult to discern so I will continue to watch for breakouts on the 1 hr and 4 hr charts.
Resistance – 1.3628 / 1.3667 / 1.3737 / 1.3791 / 1.3824
Support – 1.3490 / 1.3413 / 1.3279 / 1.3187 / 1.3078
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GBP/USD – Current 1.6105
Overview – I have been watching the test of the top of
