By admin on 29/03/2009
Just some thoughts on point & figure (p&f) charting in the forex market. Some may characterize point & figure charting as trading based upon pure price action. This is because only price, which is undeniably the most important aspect of technical analysis, is customarily included on this type of chart (in the form of X’s and [...]
Posted in Technical Trading Tips and Techniques
By admin on 29/03/2009
Yen weakness this week has translated into a USD/JPY recovery that currently appears to be targeting a potential uptrend continuation. For more technical analysis on this currency pair, please click here for Thursday’s Chart of the Day.
UPDATE: As of early Friday morning (3/27/2009), dollar-bearish price action has made a tentative reversal back down below the [...]
Posted in Technical Trading Tips and Techniques
By admin on 29/03/2009
Similar to other dollar-based pairs, USD/CAD (a daily chart of which is shown) is displaying a clear inverted pennant consolidation. This occurs after coming down off the fourth test of 1.3 resistance. In the event that this pennant is broken convincingly to the downside to confirm a continuation pattern, price should likely assume a significantly bearish stance, which should meet initial [...]
Posted in Technical Trading Tips and Techniques
By admin on 29/03/2009
An inverted pennant consolidation as of Wednesday morning has formed on USD/CHF, a daily chart of which is shown, just as a tentative flag has formed on EUR/USD. These small consolidation patterns after dramatic dollar-weakening moves last week hint at the possibility of continuations in the direction of these moves, but only if there are significant breakouts [...]
Posted in Technical Trading Tips and Techniques
By admin on 29/03/2009
FXstreet.com’s March Monthly Webinar (Part 1) that I conducted last week has been recorded and posted online for you to view at your leisure. The webinar was entitled “Trading Forex on a Daily Basis Using Daily Charts.” Here is the link to the video: http://transcripts.fxstreet.com/2009/03/trading-forex-on-a-daily-basis-using-daily-charts.html .
Thank you,
James Chen, CTA, CMT
For more information on my newly-released book, Essentials of Foreign [...]
Posted in Technical Trading Tips and Techniques
By admin on 29/03/2009
USD/JPY, a daily chart of which is shown, has recovered most of its losses from late last week, and now appears poised potentially to re-test the recent 4-month high around 99.65 hit just earlier this month. Currently, price is just below a short-term downtrend resistance line. A breakout of both this line and the 99.65 [...]
Posted in Technical Trading Tips and Techniques
By admin on 29/03/2009
Like other dollar-based pairs, USD/CAD has tentatively entered into a consolidation after the dollar plunge that occurred last week. The drop last week broke down below major uptrend and downtrend support, finally retreating back up at a point just above key support in the 1.2100 region. For more technical analysis on this pair, please click [...]
Posted in Technical Trading Tips and Techniques
By admin on 29/03/2009
After the 700+ pip plummet last week, price action on USD/CHF as of Monday morning has entered into what currently appears to be a lower volatility consolidation with indications of a potential bullish retracement. There is a distinct possibility for an inverted flag pattern to develop. Any bullish retracement/consolidation that occurs should meet resistance around the 1.1400 price region. A subsequent [...]
Posted in Technical Trading Tips and Techniques
