[B]“INDICATOR OF THE DAY” - REVERSAL DAYS[/B]
[B]Nzd/Usd:[/B] Over the past several years we have grown quite comfortable with candlestick analysis because of its ability to provide a clear picture of developments within price action. One of our favorite indicators is simply looking at price action on a given day to help better understand what exactly the markets could be telling us. In the above example, we can see that price action is starting to look bearish and could be warning of a short-term top. After rallying sharply for four consecutive days, the market has finally stalled out on Wednesday, unable to post a fresh higher high above Tuesday’s 0.6600 2009 high, and subsequently breaking back below Tuesday’s low. This sets up a potential bearish reversal day (contingent on a negative close), that could open the door to a more significant drop over the coming days. The market is telling us that it no longer wants to continue with the current trend after failing to establish fresh highs, which forces a pullback and triggers stop-losses below the previous daily low to provide added confirmation and likely spark additional profit taking on longs along with fresh sell interest.
[B]Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel’s reports in a more timely fashion, e-mail [/B][B][email protected][/B] [B]and you will be added to the [/B][B]“distribution” [/B][B]list.[/B]
Joel Kruger publishes 6 daily pieces:
[I][B]“Tech Talk”[/B] – A Daily Video Highlighting Technical Developments in the Overnight Session of Trade. [/I]
Monday-Friday (between 5:30am-6:30am EST)
[I][B]“Morning Slices”[/B] – Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes “Trade of the Day”).[/I]
Monday-Friday (between 6:30am-7:30am EST)
[I][B]“Indicator of the Day”[/B] – [/I][I]A Feature Report that Highlights our Most Significant Technical Indicator of the Day. [/I]
Monday-Friday (between 8:00am-9:00am EST)
[I][B]“Cross Country” [/B]– A Midday Fundamental Update, along with Technical Analysis of Selected Cross Rates. [/I]
Monday-Friday (between 10:30am-11:30am EST)
[I][B]“Scandi Daily”[/B] –[/I] [I]A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. [/I] (This report is only distributed through email. Please contact [email protected] if you would like to be added to distribution.)
Monday-Friday (between 11:30am-12:30pm EST)
[I][B]“Daily Classical”[/B] – A Daily Technical Overview of the Major Currencies. [/I]
Monday-Friday (published between 2:00pm-3:00pm EST)