Friday, May 1, 2009

Momentum Trading with the Wave and Chart Patterns


It was only after I embraced market cycles that I truly began to understand what to do with all the "lines and levels" I had learned to draw on my charts. Early on as I began teaching myself to trade in the late 1980's to early 1990's, there were not many books available to read about the subject of charting. I found myself gravitating towards price (instead of news) because my mother was a bit of a market timer (although not trained nor conscious that she was indeed market timing).

EUR/USD: Euro breaks above 1.3300 and trades at intra-day high


FXstreet.com (Barcelona) - The Euro is picking up strength and after bouncing at 1.3220 has broken above the upper side of the flat trading range, at 1.3300 reaching levels around 1.3320 at the moment of writing; 0.75% above its opening price.On the upside, the Euro could find resistance at at 1.3300 and above there, 13325/30 and 1.3385 (Apr 30 high). On the downside, next support lies at 1.3210/20 and below there 1.3190 (Apr 30 low) and 1.3160/65.EUR/JPY rally from 124.36 loww on April 28 has extended above 132.00 and the Euro has reached a fresh two-week high at 132.40. Resistance levels stand at 132.45 and 132.60/85. On the downside, below 132.00, next support levels come at 129.75 and 128.95.

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QUOTE

With the technical analysis for currency trading, you note it as short-term (intraday). For example, with the euro, your comment is:1,5717. EUR USD broke 1,5700 resistance. EUR USD is in a consolidation after the last bullish movement. Bollinger bands are flat. ForexTrend daily (Mataf Trend Indicator) is in a bullish configuration. 1H, 4H ForexSto (Modified Stochastic) indicate a bullish pressure on EUR USD. The price should find a resistance below 1,5740. If the resistance is broken then the target will be 1,5850.Is the bullish pressure on euro just for that day (4/4) or a longer term, say several days to one week? I am just euro as an example. I would like to know how to interpret your forex analysis in general