Showing posts with label technical analysis. Show all posts
Showing posts with label technical analysis. Show all posts

Thursday, June 9, 2011

New Video: Candlestick Formations You Need to Learn

New Video: Candlestick Formations You Need to Learn


Today’s short video is something quite special.

In many of our previous videos we’ve looked at charts using Japanese candlestick charts. While this is interesting, we’ve never quite explained to you some of the powers behind using Japanese candlestick charts.

The Japanese began using technical analysis to trade rice in the 17th century. While this early version of technical analysis was different from the US version initiated by Charles Dow around 1900, many of the guiding principles were very similar.

In this video we will point out to you some powerful Japanese candlestick formations on GoogleGold and Crude Oil.

Just Click Here to watch the video and please feel free to leave us a comment to let us know what you think.

Over 1,000 Hours of Trading Education

Tuesday, May 31, 2011

Crude Oil Technical Analysis

Crude Oil (NYMEX)5/31/2011 7:39 AM Print
 1 week Trend:  (=)  1 month Trend:  (=)
 Crude Oil‏ (Jul 11) intraday: bullish bias above 100.9
 

Pivot: 100.90

Our Preference: LONG positions above 100.9 with targets @ 102.8 & 103.5.

Alternative scenario: The downside breakout of 100.9 will open the way to 99.6 & 97.85.

Comment: the price is breaking above the upper boundary of its upward channel. Moving averages are turning up.

Trend: ST Ltd upside; MT Range

Key levels Comment

105.2** Intraday resistance
103.5** Intraday resistance
102.8* Intraday resistance
102.2 Last
100.9** Intraday pivot point
99.6** Intraday support
97.85** Intraday support

Saturday, May 28, 2011

GOLD‏ (Spot) intraday: further advance 5/27/2011

Gold5/27/2011 9:43 AM

1 week Trend:  (=)  1 month Trend:  (=)


 GOLD‏ (Spot) intraday: further advance.
 Pivot: 1523.00

Our Preference: LONG positions @ 1530 with 1540 & 1550 in sight.

Alternative scenario: The downside penetration of 1523 will call for 1514 & 1509.

Comment: the RSI has just broken above a declining trend line.

Trend: ST Range; MT Ltd upside

Key levels Comment

1565** Intraday resistance
1550** Intraday resistance
1540** Intraday resistance
1533 Last
1523** Intraday pivot point
1514** Intraday support
1509** Intraday support



Crude Oil‏ (Jul 11) intraday: the downside prevails.

Pivot: 101.80

Our Preference: SHORT positions below 101.8 with 99.5 & 97.85 in sight.

Alternative scenario: The upside breakout of 101.8 will open the way to 103.5 & 105.

Comment: quotes are breaking down their bullish channel.

Trend: ST Range; MT Range

Key levels Comment

105*** Fib retracement (50%)
103.5** Fib projection
101.8** Intraday pivot point
110.5 Last
99.5** Intraday support
97.85** Intraday support
95.8** Intraday support




Friday, May 27, 2011

A Day-Trading Strategy for Crude Oil Futures

The crude oil market can be quite volatile and therefore painful to trade if you don’t have a sound risk-management strategy. However, with volatility also comes opportunity, and day trading crude oil can be both fun and profitable when you’re on the right side of the market and have a solid plan in place. Since the launch of the Globex (electronic) crude oil contract, this market has been a favorite of many for day trading, and there’s even a mini contract if the larger contract is priced out of reach. There are many different strategies one can use to day trade crude oil futures. My personal favorite is using the MACD (Moving Average Convergence/Divergence) on a five-minute chart.
The MACD is a technical indicator created by Gerald Appel in the 1960’s. It is a trend following momentum indicator that shows the difference between a fast and slow exponential moving average (EMA) of closing prices. When using this study there are two moving average lines on the chart. One line, typically blue, is the MACD. The MACD line equals the 12-period EMA minus the 26-period EMA. Another line, which is generally red, is the signal line. The signal line is the nine-period EMA.
The signal line acts as a “trigger” to pinpoint when you’d want to buy or sell. As shown in the chart below, when the MACD falls below the signal line, it is a bearish sign, which indicates that it may be time to sell. On the other hand, when the MACD rises above the signal line, the indicator gives a bullish signal, which indicates upward momentum should follow.

I favor this approach for trading crude oil because of the volatility in this market. It’s a great tool that allows traders to be nimble, and helps determine when to reverse your position. In a less volatile market, you are more likely to get “whipsawed” and not be able to execute your strategy properly. This strategy can be applied to longer-term trades but you’d want to use a daily chart, rather than the five-minute chart that I recommend for day trading. You certainly want to use stops when you trade, and can place them at levels appropriate to your own personal risk tolerance. Ideally, you would want to hold your position until you get a sell signal when you are long, or a buy signal when you are short. At that time, you’d then reverse your position. If you aren’t comfortable trading this market, working with a professional can help you determine an appropriate risk-management strategy and trading approach. 

Thursday, May 26, 2011

Forex Anaysis on Majors

EUR

The planned breakout variant for buyers was realized and achievement of the assumed targets is <<supported>> by the current ascending direction of the indicator chart, and the progress of bullish activity, marked by the indicator at a break of the key resistance levels. Thus, for open long positions the targets will be 1,4180/1,4200, 1,4240/60, 1,4300/40. Alternative for sales will be below 1,4060 with targets 1,4000/20, 1,3940/60.


CHF

The planned short positions from the key resistance levels were realized with achievement of the basic assumed targets. OSMA trend indicator, having marked preservation of bearish activity in general, gives grounds to preserve priorities of planning sales for today. Thus, presently, we assume a possibility of retracement to the nearest resistance levels at 0,8720/30, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term sales, on condition of formation of topping signals, the targets will be 0,8680/90 or further breakout variant up to 0,8640/50, 0,8600/10. Alternative for buyers will be above 0,8800 with targets 0,8830/40, 0,8870/80.


GBP

The planned breakout variant for buyers will be realized with achievement of the assumed targets. OsMA trend indicator, having marked advantage of bullish activity on the break of the key resistance levels, gives grounds to prefer long positions for planning trades for today. Thus, presently, taking into account the overbought condition of the rate, we assume a possibility of retracement to the nearest supports. 1,6260/80, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term long positions, on condition of formation of topping signals, the targets will be 1,6320/40 or further breakout variant up to 1,6380/1,6400. Alternative for sales will be below 1,6180 with targets 1,6120/40, 1,6060/80.


JPY

Relatively low level of activity of both parties, marked by OsMA trend indicator yesterday, gives grounds to leave previous trade plans for today. Thus, we assume a possibility of achievement of supports 81,50/60, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term long positions, on condition of formation of topping signals, the targets will be 81,90/82,00, 82,20/30, or further breakout variant up to 82,60/70, 83,00/10. Alternative for sales will be below 81,20 with targets 80,80/90, 80,40/50, 80,00/10.


Today's Crude Oil Support, Resistance and Pivot Points

Crude oil was slightly lower in Tuesday evenings overnight session as it extends this month's trading range. Stochastics and the RSI are oversold and are turning neutral to bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 102.93 are needed to confirm that a short term low has been posted. If June renews this month's decline, the 38% retracement level of the 2009-2011 rally crossing at 92.94 is the next downside target. First resistance is the 20 day moving average crossing at 102.93. Second resistance is the reaction high crossing at 105.16. First support is the reaction low crossing at 95.18. Second support is the 38% retracement level of the 2009-2011 rally crossing at 92.94. Crude oil pivot point for Wednesdays trading is 98.76