Forex Confluence Trading Example - AUDUSD Setup This post will run over the AUD/USD price action from today (31/7/2012) with a particular focus on a high probability trade setup that presented itself. We have published numerous analysis posts on the merits of confluence when trading the forex market and this was an excellent example. Many…
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EUR/USD Pivot There is a clearly defined price structure pivot level on the EUR/USD pair around 1.3685. Price has already hit the level and bounced approx 30 pips as I type this post. Price action confirmation here could be of interest for intra-day traders. Average range over 60 days is 183 pips. Yesterday printed 188…
Japanese Yen Still Strongest Currency On The Daily Thru Weekly Timeframes The currency correlation relative strength charts provide an insight into how the Japanese Yen is still outperforming all of the majors on the daily and weekly timeframes with only the greenback edging ahead on the 4 hour. The euro is no longer the weakest…
Forex Pivot Point Calculator I’ve been making use of floor trader pivot points in my trading analysis for a long time now. I tend to predominantly use them on an intra-day basis, as additional confluence, when trading off support and resistance areas. Pivot points were originally utilised by floor traders as an effective, but basic,…
New Zealand Dollar Fibonacci Confluence Target Hit This weekends New Zealand dollar/US dollar analysis identified a Fibonacci confluence area – as per the following excerpt: If reached, the Fibonacci confluence zone around 0.7920 to 0.7970 could see demand for the NZD/USD pair. This could provide an interesting area to look for price action confirmation…
Double top price pattern target hit The intra-day double top I posted earlier today, and tweeted in real time before the trade triggered, has run to the projected price target area. This was easy to identify as a high probability setup due to the confluence with higher timeframe resistance. There was minimal drawdown and a…
GBP/USD 8/8/11 Update: Price projection target hit; see follow up post here Cable had a gap open last night and price has subsequently failed to exceed the previous Asian session peak; a downside violation of the active low at 1.6384 would trigger a lower time frame classic “double top” pattern trend reversal signal – as…
Bearish Gartley pattern – intra-day price action update. Further to the EUR/USD analysis posted over the weekend; a bearish Gartley pattern has formed today. This intra-day chart shows price is currently consolidating near point D with the daily high at 1.4416. Bearish Gartley 4 hour chart View the Harmonic Pattern Discussion Thread. Technorati Tags: gartley…
The currency correlation charts were pointing towards a weak sterling and strong Swiss franc. It should come as no surprise then, within the context of the above disparity in strength, that the GBPCHF pair broke out of the recent range to the downside today. GBPCHF breakout chart A negative reaction to the…
Update:25/5/11 The relative strength correlation chart gave a good heads up that the level would break, and it has indeed broken out nicely to the downside – with a record Euro low versus the Swiss Franc. Under normal circumstances the strong previous support area should now provide some kind of resistance if revisited. Today’s…
This GBPJPY (Pound Yen) chart has my attention. A new high was formed followed by a pullback to the 135 major round number. I will list what I see as the pros and cons relating to the current price action. Reasons to buy GBPJPY when referencing the attached chart. The pound/yen currency pair has…
My previous post regarding the NZDUSD forex currency pair said to watch for “the resistance turned support below today’s low”. It still makes me smile when price reacts like this at support and resistance areas. Anyone who thinks the forex market is random should pay more attention! Anyway, here is a chart showing how price…
NZDUSD looks close to forming a double top chart formation. The highs are not identical but the order flow at these levels could be in place for a move lower. A double top is not triggered until price breaks the pattern lows but an aggressive entry with higher potential risk reward is near the…
I wanted to post an update on the Harmonic Fibonacci chart I posted last week. Price has reacted strongly to the area and the butterfly pattern gave a tight risk reward entry opportunity. I trade these patterns on lower time frame – if they are aligned with the intra day price action…
USDCHF turning point? USDCHF is making new lows but a bullish price action setup here could be of interest as there is bullish divergence on the forex pair. MACD overview Trading divergence is a common method utilised by forex traders to identify areas where momentum could be slowing. I always look for price action…
Harmonic Fibonacci Patterns I mentioned the fact that price is at the 61.8 fib area from the long term charts on EURUSD the other day. The attached chart shows there is also a harmonic pattern at this area which provides additional confluence at the aforementioned 61.8 Fibonacci retrace combined with psychological round…
I am now long GBPUSD. The attached charts show the following: Uptrend Pullback to the price pivot area highlighted on the 4 hour chart here. 15 minute bullish engulfing bar as per the GBPUSD forex chart here: I like the 61.8 fib confluence with price structure. My target is a modest 15 pips as…
There was a short trade opportunity on the GBPUSD pair this morning. Lets look at the setup. 4 hour inside bar at a higher time frame resistance area. 15 minute chart gave a breakout and pullback entry 15 minute chart took out a minor higher low No news around entry time The 4 hour…
The GBPUSD pair gave a great confluence buy which I took and exited very quickly for a profit. The chart below shows the higher timeframe trend line at a confluence area with a small ascending trend line. I entered with a 14 pip stop loss and gained 10 pips. Friday afternoon liquidity can…
