Tagged "support"

Here is a great example I wanted to share with you from yesterday that combined a) Support and Resistance with the b) Double Detection feature of CandlePro that would have netted you up to 56 pips within 2.5 hours.

First off, we always look at the charts and determine where our S/R levels are. In this example I actually did this for you in the free daily signal (October 7th, 2010) when I wrote: “A more aggressive but more realistic long would be a long in the 1.3860-1.3890 support zone with a bullish signal targeting (from 1.3890) 1.3915, 1.3945, 1.3975 and 1.40 for 110 pips profit.” In essence, to a CandlePro user this should boil down to “Looking for good bullish signals in the 3860-3890 range.”

At 16:45 GMT we got our bullish confirmation – a 15m EUR/USD and GBP/USD DOUBLE with 100/100 Forecast Strength:

It is a) with the strong trend, b) good forecast strength, c) a DOUBLE and d) right in our support zone. They don’t get much better than this as far as confluence lining up for you – these are the sort of trades you should be waiting for.

I normally don’t trade 15m charts very much but as the trend gets stronger and stronger I look on smaller and smaller timeframes to get more entry points in the high-probability trends.

9-23-08

3:26a GMT – EUR/USD remains bullish, with strong support between 1.4600-1.4500. I will be looking for a dip and then bullish reversal signals in this area, with a mid-term challenge of 1.4900 as my target.

(click to enlarge)

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9-19-08

3:26a GMT – The USD is giving off mixed signals but I’m looking to buy dips as other currencies gain back some losses they suffered in the past month.

Trading Idea: Support is at 1.4100 and I am looking for bullish reversal signals at this area. Long targets at 1.4225, 1.4280 and 1.4400.

(click to enlarge)

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9-5-08

3:26a GMT – As the EUR/USD broke through strong support once again, we need to back out all the way to a monthly chart to take a look at where this might go next. The answer: the EUR/USD has more room to fall with the next major support at 1.4000 at the intersection of the 50% Fibonacci level (from the July 2005-March 2008 rise), the monthly trend support and a large round number.

Trading Idea: Look to sell rallies on shorter term charts down to 1.4000.

(click to enlarge)

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9-4-08

3:19a GMT – EUR/USD is very bearish on all but the weekly and monthly charts (where solid support has yet to be broken) and I am looking to sell rallies. In the short term, however, caution is advised as a bullish reversal hammer formed yesterday on the daily charts right on strong daily support (right above 1.4475). On top of that a bullish RSI divergence has appeared on the daily charts.

Trading Idea: look for a bit of a rally in the EUR/USD before selling bearish reversal signals on strong rallies. At a minimum target back down to support at 1.4475. If you are cautious I would advise sitting this one out until clearer direction is given in the market.

(click to enlarge)

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9-2-08

4:21a GMT – After our last successful short trade on the EU pair we are again looking to sell for another retreat down to 1.4475. Threats to trade are a very oversold level and the weekly/monthly support the pair is currently resting on. Down to 1.4450 would complete a nice double-top reversal and signal further EU losses.

Trading Idea: shorts favored down to 1.4475.

(click to enlarge)

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8-15-08

6:00a GMT – EUR/USD remains bearish on the charts with a sustained break below 1.5000. Pair is stilling heavily oversold but a few more days of sideways movement should ease that. For those doubting which direction the trend is in the shorter term: the pair has dropped 1300 pips in the past 30 days. Remember – it is easier to ride the trend then to bet against it.

Trading Idea: As long as the pair remains below 1.5000 shorts are favored with targets at 1.4865, 1.4775, and eventually all the back to strong support at 1.4450.

(click to enlarge)

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8-13-08

22:21 GMT – GU remains bearish on all time frames but is approaching strong weekly support just as the pair is reaching highly oversold levels on the weekly chart as well (it is also oversold on everything from 1h-weekly). On signs of bouncing off the support at 1.8500 this might be a good opportunity to hedge your shorts on a bounce back to 1.9000.

Trading Idea: Look for stalling and candlestick signals on the 4H and daily charts at 1.8500 with long targets back to 1.9000 as the oversold levels reset.

(click to enlarge)

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7-30-08

3:18a GMT – AUD/USD pair remains bearish on both the daily, 4H and 60M price charts. However there is strong intraday support at 0.9575 that I expect to stall a drop below. 60M RSI is heavily oversold and has just crossed above 30 indicating a bounce and the RSI on the 4H charts is showing a bullish divergence as well. Depending on how strong resistance is above we may see a return immediately to the downside at resistance levels or we might see a tight range develop between 0.9550-0.9475 pending the unemployment news from the US Fed.

Trading Idea: short term I expect a bounce to the yellow trend resistance currently at 0.9535, or to daily resistance at 0.9550. Midterm look for a re-challenge of 0.9475 and, if broken, a test of 0.9425.

(click to enlarge)

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7-30-08

1:44a GMT – EU has touched and bounced off of strong daily and weekly support after yesterdays retreat downward found no buyers willing to support the pair. Support can be found between yellow and purple lines on chart below, currently between 1.5585-1.5525. Pair also just crossed above 30 on the 60M RSI, a buy signal.

Trading Idea: Look for buying opportunities between these support levels as pair looks ready to rebound. I expect the pair to make a full recovery to 1.5900 with targets at 1.5660, 1.5725 and 1.5815 along the way.

(click to enlarge)

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