Forex Trading Signal Week #15 2010
May 3, 2010 by Kelvin
Filed under Forex Signals
If you have seen and taken the trade alert last week, you will have lost close to 28 pips. Does that means that the Gartley pattern is not reliable? Absolutely Not.
In trading, we have to prepare ourselves for losses. There is no way you can win all the time. If you have noticed the stop loss and the target profit that I have set. You are getting a risk reward ratio of about 3:1 which means that you can afford to have 3 losses for every win. Imagine you winning 5 times and lost 5 times with this strategy, you will be still winning 252.5 pips in total.
I will continue to post more alert that has higher risk reward ratio so that you can learn from the trade as well. Enough of last week alert, below is this week forex analysis for GBPJPY and EURUSD.
1) Forex Trading Signal For GBPJPY
Forex Trend Analysis
- Weekly Chart: Strong Bearish
- Daily Chart: Mix
- 4 Hourly Chart: Weak Bullish
- Hourly Chart: Mix
As a whole, the trend for this week is not yet established and you should be careful when entering any trade. Try to go for short term trade and leave your long term trade till you see a trend being established.
Forex Technical Analysis
Weekly Chart
The price has succeeded in retesting the support trend line and is now moving up. From the long term MACD, I can see that there is still strength in the upward movement. However you have to look out for the pivot R1 resistance at 145.937.
4 Hourly Chart
As there are nothing much to talk about for the daily chart this week, I will skip that and go directly to the 4 hourly chart.
On this chart, you will see the formation of a symmetrical triangle which is a sign of consolidation after a period upward movement. As the symmetrical triangle is a continual candlestick pattern, you are likely to see another upward movement after the consolidation ends.
4Hourly GBPJPY
However you should not rush into a LONG trade as there may be times where the market may move irrationally. You should wait for a proper breakout which is validated by MACD before entering any trade.
Overall Forex Analysis
I will wait for the breakout to occur on the 4 hourly chart before I enter any trade. Do keep a lookout for the breakout.
2) Forex Trading Signal For EURUSD
Forex Trend Analysis
- Weekly Chart: Weak Bullish
- Daily Chart: Mix
- 4 Hourly Chart: Strong Bearish
- Hourly Chart: Strong Bearish
As a whole, the short term trend is still down and you should be looking for chances to go SHORT.
Forex Technical Analysis
Weekly Chart
After the successful breakout of the support level at 1.34748, the price has been moving down. There will be a support at 1.30839 and this is a good place to exit some of your lot to take profit if you are still having SHORT position.
EURUSD Weekly
Daily Chart
On this chart, you will see the price being resisted by the pivot point.
EURUSD Daily
4 Hourly Chart
The price for this chart is supported by S2 pivot point at 1.31745. However the MACD is having a bearish crossover which is a sign of a downward movement.
Overall Forex Analysis
I will wait for the price to break through certain support and resistance level before I enter any trade.
I will SELL if the price break below S2 at 1.31745.
Other Related Posts:
