An interesting example of trade from today. On lower time frames (5,15 min) situation wasn’t so clear. As I always write, it is good to check other, higher time frames and check exactly what current situation is. On 30-min chart of eur/usd we could see that the main trend is up but the high from yesterday was still a resistance. We saw a correction down to 50 and later 61.8% retracement (also a 100 simple moving average – green one).
Later price exploded higher. It was clear that the best place to close is 161.8% because R2 resistance was near that level. Entry signal was from lower time frame, but the whole trade came from this 30-min chart.
S&P500 bulls are trying to stop correction. In last two days they managed to go up over 80 points. Great, but when we check longer time frame we can see that week closed below important level at 1891 points. Still, they managed to hold above 55 moving average on weekly chart: Read More →
I wrote in my last post that this week is very important for SP500 and it is a test for bulls. They failed.
First time since December 2012 SP500 closed below 21 and 33 moving averages on weekly chart:
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It all was going well for bulls. For now. Week is not over yet, but for now sp500 is below 21 average. Since January 21 2013 expotential moving average was a stronghold. There were corrections which ended below that average but bulls always managed to end week above that 21 average. That is why this week is important. If sp500 closes this week below 21 average this will be a bad sign. We might see more sell-off, below weekly sp500: Read More →
As I wrote before there are no buyers on eur/usd. Similar situation is with oil and gold. For me it looks like dollar got back trust. Now every good news from US will be probably a fuel for bulls on dollar, and I think that every bad news will be ignored. Euro with all stagnation in eurozone and its problems is no alternative for dollar. Read More →
I remember 2010. Only gold is safe investment. Gold is going to the 10000$. You get the picture. In ten years gold got from 200$ to almost 2000$, so what was next? In the meantime there was an escape from dollar – eur/usd was around 1.5 and it looked like it may even go higher. Now, after few years, we may be on a verge of something interesting. I will write another post about eur/usd, now let’s stick with gold. It is the last quarter of 2014 and gold is on important support inside a triangle:
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This should be no suprise. On eur/usd we have a strong down trend. On some trading days you have to simply wait and execute the plan. Just like on 1-hour chart below. I wanted to show you that easy setup, when price broke below support, was enough. One thing is interesting. Move down was strong, but stopped at 200% extension line (what is very common when 161.8% fails as support).
As some of you know, I also trade stocks. Lets see how some Renko trades will work out. I try to post more about Renko, because I use this often with good results. Remember, this are not trade suggestions. I only want to show you more trades examples with Renko. Oh, one more thing. These are long term trades (couple months +).
AA – Alcoa
Uptrend is strong, but recently bulls failed to make new high. Righ now I watch how they handle support at 16.
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Last time I wrote about potential support at weekly and monthly pivot points. I expected to see some bounce, even a short one. And yes, there was a bounce – very short one. Situation is getting even more complicated for eurusd. It broke through trendline and it looks like there is still a place to fall, check this weekly chart:
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