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Jumat, 19 Juli 2013

Investing in Currency Pairs: The Bollinger Bands and the Stochastic Oscillator

In earlier posts are the Bollinger band and the stochastic Oscillator used to analyze the market for entries. In this post is the Bollinger bands and the stochastic Oscillator illustrated.

The Bollinger bands and the stochastic Oscillator
The Bollinger bands consist of an upper band and a lower band; if the price line is outside the upper band is it an indication that the currency is oversold; if the price line is outside the lower band is it an indication that the currency pair is overbought.

The indicator cannot stand alone; as a second indicator is the stochastic Oscillator handy as it provides information about the market condition; is the market in an oversold or overbought condition.

The Bollinger bands
The image illustrates a price line and the Bollinger bands; the volatility in the market rise with the bands; wider bands are a market with more volatility and reverse.

If the price rise and the lower band starts to fall is it an indication that the price will start rise slower or fall; if the lower band starts to rise is it an indication that the price will start to rise faster.

The stochastic Oscillator
The image illustrates also the stochastic Oscillator; in this post is it the second indicator; it confirms the market condition the Bollinger bands provide.

How to use the two indicators 
The indicators are used to find the entry and exit point where the market is in an oversold or overbought condition; in my article “Trading Forex Online - How to Use Bolling Bands and Stochastic Oscillator As a Trading Strategy” are described how to trade with the two indicators.

In the image is an overbought and an oversold situation;  the two indicators give the traders an indication of which direction the market is moving in by looking at the tops and bottoms of the price line and the tops and bottoms of the Stochastic Oscillator.

In the overbought situation is the two highest price line tops in an uptrend and the two price line tops at the Stochastic Oscillator in a downtrend which indicates an exit point if the items are met in my article “Trading Forex Online - How to Use Bolling Bands and Stochastic Oscillator As a Trading Strategy” .

Reverse in the oversold situation is the two lowest price line tops in a downtrend and the two price line bottoms at the Stochastic Oscillator in an uptrend which indicates an entry point if the items are met in my article “Trading Forex Online - How to Use Bolling Bands and Stochastic Oscillator As a Trading Strategy”.

Please note that the past performance of any trading system or methodology is not necessarily indicative of future results which also is the case using the two described indicators.

EUR/JPY M30 and USD/CAD H1 Update

Please click the link:
EURJPY & USDCAD UPDATE

Thanks,
Seb

Dow Jones Industrial Futures H4,Daily & Weekly Update

General Overview on 18/07/2013 19:00 CET:

I have two counts for Dow Jones CFD Futures Index and this one is the bearish one.

On Weekly chart it shows the possibility of a further gains for the index as high as 16642 - 16845 zone is. This is a projection zone that is including:
  • W = Y Geometry of a  HIGH DEGREE CYCLE
  • 161%(A) = (B) Geometry - DEGREE  CYCLE
  • 61%Fibo Extension of waves 1 -3 LOWER DEGREE CYCLE.
On Daily chart right now the most important thing is to determine if the recent wave 5 green is in only small five waves of one lesser degree (purple) and index might perform a Double Top and reverse
OR
this is just the begining of a fully blown fifth wave to the upside and alternate count has been shown on H4 chart.

H4 chart shows intraday support and resistance levels with main focus on Weekly Pivot level. The targets for the recent triangle breakout are WR1 or even WR2.

Support/Resistance:

15682 - WR2
15559 - WR1
15460 - Intraday Support
15339 - Triangle Support
15314 - Weekly Pivot
15191  - WS1
14942 - WS2

Trading Recommendations:
As long as intraday support of 15460 holds long side of the markest is preffered with targets shown on chart.

Seb
30-DAY FREE TRIAL ON WWW.RESISTANCEINVEST.COM 
FOR ALL NEW CLIENTS. 
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Kamis, 18 Juli 2013

DAX30 Futures H1 Update

General Overview on 18/07/2013 13:00 CET :
Complex corrective pattern are present right now in this wave B to the upside.
Currently pattern is getting more and more complex and possible Double ZigZag Wave B shape could be in the making
The Key Support is the GAP. Once broken, lower prices should be expected.
Support/Resistance:
8357 - Wave B target
8274 - Wave b High
8135 - Weekly Pivot
8090 - 8126 - GAP area that has not been covered
8028 - WS1
7738 - WS2

Trading recommendation:
As long as GAP holds the target is  8274 level anf beyond
Seb
30-DAY FREE TRIAL ON WWW.RESISTANCEINVEST.COM 
FOR ALL NEW CLIENTS. 
JOIN NOW!!!


Eur/usd 18.07.2013 trade idea H4


Eur/usd
BUY
1.3098
1.3113

SL 1.3086

EUR/JPY and USD/CAD H1 Update

Please follow the link and scroll down the page:
EURJPY & USDCAD Update

Thank You,

Seb

Rabu, 17 Juli 2013

EUR/JPY and USD/CAD H1 Update

 17/07/2013
Please click on the link and scroll down the page:
EURJPY & USDCAD Update
Thank You,
Seb

17.07.2013 EUR/USD TRADE IDEA


EUR/USD
BUY 1.3130
SL 1.3119 
RISK 11 PIPS

UPDATE:

 1. POSITION: 1.3130
 2. POSITION: 1.3128

SL 1.3114
TP 1.3200-20
 

SP500 Futures H4,D1,W1 and Monthly Update

General Overview on 16/07/2013 on 21:00 CET:

Monthly Chart:
The rule of fractalization will become helpfull here if one consider that wave ABC is Expanded Flat wave A and now price is making  ZigZag wave B and then another wave C to the downside is expected to complete bigger fractal ABC in wave 4. Capito?


Weekly Chart:
 Price is moving in blue channel.
Wave W and X of ZigZag area done, and now final stages of wave Y are in progress: last wave 5 to the upside before cycle is completed. Targets on chart, but W=Y target is on 1692 points.


Daily chart:
Orange rectangle is the first possible target for the whole cycle.


H4 Chart:
 Wave 1 and 2 are done and now price is in the final stages of wave 3. Then corrective pullback is expected in wave 4.


Support/Resistance:
1708 - WR2
1694 - WR1
1686 - Wave 3 Top
1660 - Weekly Pivot
1655 - Wave X top | Intraday Support
1646 - WS1
1612 - WS2
1598 - WS3

Trading Recommendation:

Buy Weekly Pivot OR 1655 Intraday Support level in anticipation of impulsive wave 5 to the upside breaking fresh, new ground. Targets above.

Seb
30-DAY FREE TRIAL ON WWW.RESISTANCEINVEST.COM 
FOR ALL NEW CLIENTS. 
JOIN NOW!!!