i don’t know which subforum to post this in (or if it’s even allowed), but (after realising that the simplest strategies always win in the long run) i’ve finally done it – i’ve made a forex blog. i’ll be posting my trades there as well as on this thread, mainly for constructive criticism/identifying weaknesses. currently i have 2 trade ideas up, as well as my rules and strategy.
Here are two charts that caught my attention today. The first 4H EURGBP chart. We see the trend reversing from up to down, forming a triangle along the way. This is usually a continuation pattern, so I would expect this pair to go down in the next couple of days. Potential gain is about 130 pips (about 128 if you include the spread).
The other chart is the hourly chart of the EURAUD pair. It looks like this pair is heading straight towards a resistance zone, where most of the time you can expect a bounce. Potential gain is roughly 50 to 60 pips, and the broker I’m using (Alpari UK) has an 8 pip spread on this pair, so it’s really between 42 and 52. This would mean that my stoploss will have to be only about 14 pips below the resistance line, which is a bit tight.
Charting a stock market sector divided by the S&P 500 is a favorite method the veteran technician uses to determine if a given sector is under performing the broad market. Another good technical indicator is the Moving Average Convergence Divergence (MACD), said Murphy. The MACD uses exponential moving averages, as opposed to the simple moving averages used with an oscillator. Gerald Appel is credited with developing the study.Longer-term technical signals are more powerful than shorter-term signals.