Tagged "false breakout"

March 11, 2010
Forex Signals – ...

Yesterday Recap: Pretty good day of trading yesterday as 3 trades were triggered as I capitalized on the tightening consolidation pattern of the pair. First was the aggressive sell triggered by the bearish break of 1.3580, which dropped for a quick 30 pips to rising support. That activated the primary long at 1.3550 which rose for 100 pips.

Daily Outlook: Despite the large up and down swing the daily outlook didn’t change a bit – the pair continues to consolidate in a tight triangle pattern with the overall downtrend still intact. I will look for a false breakout to occur to the topside, possibly even challenge the stronger falling trend resistance on the daily charts (you can just see the top of it – its the top blue line) currently around 1.3700.

Trading Idea: Not as aggressive today as we are running out of room to maneuver in this pattern. Primary trade is a short on a signal under 1.3700 resistance, with targets at 1.3670, 1.3640, 1.3605 and eventually 1.3560. Secondary trade is a bearish break of 1.3620 support could trigger a run to the trend support again (currently at 1.3570).

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188 Comments
candlestick, consolidation, day trading, EUR/USD, false breakout, forex market, pips, technical analysis, tight triangle, topside, trading ideas, trend support, triangle pattern
daily forex signals, Technical Analysis
June 3, 2008
Technical Analysis ...

6-3-08

19:08 GMT – AUD/USD got heavily sold off thanks in large part to the Fed’s comments about not letting the dollar get too weak. In the short-term, especially with the Dow still struggling to hold any gains I see support at .9510 holding strong against any attempts to break through it. There is also an RSI divergence on the 60M charts further supporting bulls for more gains.

Trading Idea: Long above .9510 with targets at .9540, .9570 and .95610.

Update: AUD/USD has made a clear break of .9510 without giving a bullish reversal candlestick above .9510. Signal is cancelled and we will look to sell on rallies.

Signal Review:  Got the bounce right just the placement wrong. Pair has made lower highs and lower lows for past few days and trend lines on below chart shows it is caught in a bearish channel. Missed that one. The bearish doji above support would have provided a nice entry point as well before a 90+ (so far) pip rise.

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AUD/USD, bad news, bounce, channel, day trading, false breakout, RSI divergence, support, technical analysis, trading ideas
Technical Analysis

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