ASIAN -EUROPEAN SESSION
A) CALENDAR
-15/11/2007
-GMT 23:50 JPN BoJ Meeting Minutes (Oct)
-16/11/2007
-GMT 05:00 JPN Leading indicator (Sep) EST PREVIOUS 27.3
-GMT 05:00 JPN Coincident indicator (Sep) EST 66.7 PREVIOUS 85.0
Definition
An economic indicator that generally moves in line with the general business cycle such as industrial production.
-GMT 10:00 EU Trade balance (Sep) EST bn PREVIOUS 1.3bn
Definition
Balance of trade figures are the sum of the money gained by a given economy by selling exports, minus the cost of buying imports. They form part of the balance of payments, which also includes other transactions such as international investment. The figures are usually split into visible and invisible balance figures. The visible
balance represents the physical goods, and invisible represents other forms of trade, e.g. the service economy.
A positive balance of trade is known as a trade surplus and consists of exporting more (in financial capital terms) than one imports. A negative balance of trade is known as a trade deficit and consists of importing more than one exports. Neither is necessarily dangerous in modern economies, although large trade surpluses or trade deficits may sometimes be a sign of other economic problems.
If the balance of trade is positive, then the economy has received more money than it has spent. This may appear to be a good thing but may not always be so.
B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4710 111.25 2.0570
R2 1.4675 111.00 2.0535
R1 1.4640 110.70 2.0495
S1 1.4600 110.10 2.0420
S2 1.4575 109.75 2.0370
S3 1.4540 109.50 2.0330
C) WATCH
-Interest Rates
- (15/11/2007) GMT 23:50 JPN BoJ Meeting Minutes
- (16/11/2007) GMT 10:00 EU Trade balance
D) TRADING TIPS
CANDLESTICKS CONTINUATION PATTERNS
Rising and Falling Three methods. The first day of the Rising Three methods pattern is a long white day which fully supports the uptrending market. However, over the course of the next three trading periods, small body days occur which, as a group, trend downward. They all remain within the range of the first day’s long white body and at least two of these three small-bodied days have black bodies. This period of time when the market appears to have gone nowhere is
considered by the Japanese as a “period of rest”. On the fifth day of this pattern, another long white day develops which closes at a new high. Prices have finally broken out of the short trading range and the uptrend will continue. A five day pattern such as the Rising Three Methods requires a lot of detail in its definition. The above scenario is the perfect example of the Rising Three Methods.