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Archive for the ‘Price patterns’ Category

Monday 04/14/08

Currency trading end of last week into this week is like the Abbet and Costello “Who is on first and what’s on second” bit, confusing and violent.
G7 Language was purposefully vague not referencing China’s currency but general currency fluctuations- market tried to anticipate intervention action which caused more violent price action overnight and through [...]

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The pair finally broke from its triangle - down, as I long expected. Freaking heck that took long enough. Usually went it goes sideways for a good while it breaks out and acts like a teenager with long pent-up energy - it goes bananas. I circled previous times like this in the last several [...]

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I am updating the price pattern section, finally. I’ve started with Triangles. If you don’t know much about these, enjoy!

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Heads up (haha) -  commodities ($CRX) could be forming a head and shoulders, which is a major reversal pattern - by the way, I plan on updating the Price Pattern section very soon, so more discussion on Heads and Shoulders there stay tuned. See how I am looking at it in the chart. I [...]

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EUR/USD continues its bounce, and today the Stochastics crooked up - and out of oversold - on the 3 green arrow (Workshop) study set. If the pair was just above its moving average that would be perfect. But that’s the problem. The pair, technically, is not uptrending. It’s in a bit of a funk, [...]

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The pair broke down from a triangle and is heading back up and is now at resistance. Is a retest in the cards? We’ll see. Examples of possible, simple entry signals in line with the trend are in the green ovals where the fast stochastic line crosses below the slow line. Notice how we [...]

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Stocks got a HUGE “denied” today as they failed to overcome former support/now resistance (was the old head and shoulders neckline) and came down forcibly from it. See the green oval on the lefthand chart.
 
 
This is a classic “retest”, having broken out from a technical level. What does it mean for the pairs? [...]

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The recent turmoil we’ve seen in stocks, the fears of recession, then the bounce back … they’ve taken their toll on EUR/USD. The euro, riding a wave of optimism over the economic strength of the eurozone, has stalled. It’s seen in the two peaks the pair made in November and this month: instead of [...]

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After the carnage in stocks today (more later), the GBP/JPY is eyeing the downside again. If you traded the pair on the hourly chart, you were stopped out in the last few days. But oh, what a run! And if you gave back too much in gains, time to devise an exit strategy that [...]

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Today is the first day I look at the S&P500 ($SPX) - representing the average of US stocks - and think “this may be a pennant”. If I can get a triangle shape out of short term support and resistance, it’s a pennant. And price coiling like this at support is pretty threatening to [...]

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Remember 213.50, how we talked about how a breach lower than this point would resume the bearishness? The pair has been flopping around above that for a week but in the wee hours it broke lower. Finally, dang it.
If you missed it or are not in yet, fear not. It is doing a typical [...]

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Just an update, the thing is being a royal pain in the butt, showing a lot of strength for day now and at resistance. If it keeps this up it’ll break resistance soon, thereupon to likely test former support on the daily chart as resistance. I maintain, as I have for many months, that [...]

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A triangle has shaped here (click chart to enlarge) - descending triangles require a minimum of 2 rejections of a falling resistance and of flat support, and we’ve got that. Basically, when the bulls push up they get less ground every time. The suggestion is to keep an even more watchful eye out on [...]

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Now that the pair trounced the bulls with a bone-crunching thud, what next? After a nice consolidation that looked pretty flag-like (on a short term timescale), it broke lower some more overnight. It fell a few hundred more pips (!) and has now retraced back up to where it broke out from.
Looked at on [...]

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Oh ho ho, look what’s going on today - quick, check out the GBP/JPY! Yum!! Down about 350 pips since our re-heads-up New Year’s eve. A lower than expected ISM reading is being blamed, which also is dragging stocks down. There’s bad news all the time, you never know what will be the trigger [...]

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