Sunday, September 18, 2005

Bolly Bands on Cable

5 Min GBP

1 Min GBP

Positive divergence on both time frames and a break of the 20, 2 Bollinger band.

Tuesday, September 13, 2005

Fib Levels on the Cable

I usually don't follow the cable but it gives me an idea of where the EUR may go so I decided to look at the most recent price moves and this is what I discovered.

On August 30th the cable reached a 38.2% fib level shown on the daily chart, if you look at the hourly chart bellow you can see there was positive divergence at this critical support level. A very nice 200-300 pip move in four days depending how aggressive one is.

Recently the cable reached a 61.8% fib level (daily chart) coupled with negative divergence on the hourly chart shown bellow. These technicals may have captured the psyche of the market or it could just be fundamentals at play but the cable dropped a staggering 315 pips in eight days, not a bad position to have.

I have never placed a position trade before, I primarily like intra day trades, but I can't ignore such a large move. While I take 5-20 pips a day from the market with great content I could take a 200-300 pips in a single position.

Now I'm not too familiar with the roll over interest but I assume that a healthy profit could have been made here. In the future I will be looking at larger charts with an intent to demo a few trades and see how my analysis fares.

Any questions or comments are welcome.


Friday, September 09, 2005

Long time no post, its been a busy couple of weeks for me.

Today there was a nice reversal at S1 at 8:00am est.

Have a great weekend


Tuesday, August 30, 2005

15 min EUR/USD
Today I found myself with a double bottom with divergence on OsMA & MACD with a CCI 14 hook @ ~200

A closer look on the 5 min you can see a nice reverse hammer with the CCI Hook as well as divergence on all other indicators. This all happened just under S.05 (M1), I find that there is usually a reversal at M1 or S1 after the London session once one of these supports are breached.

There is also reverse divergence on the 5 min chart, a possible retest of M1?

Hope everyone had a productive day