PipOmatic

Looking at the GBPCHF chart this morning. It has made a very strong up move in the last few days.

A Gartley has completed at the same place as an APF “Measured Move”. It’s one to watch …

Both the Euro and Australian Dollar are strong currencies at the moment. The Daily chart (attached) shows that the pair is at the bottom of a daily up trend line. Looking out a little further, the Weekly shows price has been in a horizontal trading range for quite some time.

So my thinking is… price will come back to the daily trend line and then move back up, heading to the upper end of the weekly channel.

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I received a news letter from the Sam Seiden at the Online Trading Academy earlier today and thought it would be useful to share the basic but SO VERY TRUE information contained within it.

You can read the article yourself by clicking on this link.

The trainers at the Online Trading Academy seem to be among the best teachers around. The newsletters they send out each weeks are excellent and I advise everyone to sign up. Here is a link to their Newsletter archive to see for yourself.

The Forex markets are markets that move. In a market that has significant and consistent movement, using breakouts is very appropriate. As with any strategy, there is a right way to understand and use it and a wrong way….

The chart above is the EURUSD. Notice the horizontal resistance line and let’s work left to right in our understanding of what’s really happening behind these candles in the chart. The first circled pivot high on the left becomes that pivot high because supply in this market greatly exceeds demand at that price level. When price reaches the line, some of the sellers that make up that supply get to sell but there is still much more supply than demand so price has to fall. The drop from that first circled area is significant as we would expect. The next time price revisits that level, it declines again but this time, the decline is shallow compared to the prior visit. This is because each time you revisit the level, more sellers that make up that supply get to sell so the supply and demand equation is becoming more in balance.

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The EUR-CAD looks to be setting up for a Daily TF short. See the chart…. it’s worth a thousand words.

Came across some good Elliott Wave charts covering the JPY pair this morning at DailyFX.com thanks to one one of my trading buddies (Paulo). Gives a good interpretation of where we are in the grand scheme of things.

Now I’m not and EW guy and do not plot EW waves on my charts, but I do take notice of what they are saying. My own view on things at the moment is ….. JPY’s have more or less topped out for the week and I am looking for them to head south.

I’m currently short GBPJPY so fingers crossed. You will see by clicking on the DailyFX chart below that my thinking is also in line with their EW analysis.

I went short GBPJPY yesterday before seeing this chart based on a Multi-Time frame analysis using the 1hr chart as the trigger. Click the Image below for the full chart: