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Gold Technical Chart | 25 Dec 2010

Gold is one of the favourite commodity for every investor. Simply because of its liquidity and asset of every country. Let us analyze the technical chart of Gold using Doda Donchian and Ichimoku indicators.



Doda-Donchian gave buy signal @1378.90 just below kumo. Price is now inside kumo. It needs to break 1384.38 to start bull run. Flat line of Senkou Span B confirms that. Whenever the Senkou Span A or Senkou Span B lines are flat, the price gets attracted towards that flat line. Here, the flat line is on upside. So, price will certainly move upwards in coming days.
If you see the daily chart of Gold, the price always find support on Senkou Span A. Isn't that interesting point?
Share your views in comments section below.

AIG Daily Chart - 19 Dec 2010

Technical chart of AIG and its movement using Doda-Donchian and Kumo.






Around 21st Sep 2010, Doda-Donchian gave Buy signal for AIG. It faces resistance on kumo after that, but it crossed it without any problem as the thickness of kumo was very thin. It went upto the high of $45.93, after which it started its down movement.
Then on 10th Nov 2010, it gave Sell correction on Doda-Donchian @42.47 but it got support on Kumo viz. $40.70, and it re-started it upward journey. Another Buy signal from Doda-Donchian and its last close was $52.57.
I illustrated this example to show how easy it becomes trading when we combine the power of Doda-Donchain and Ichimoku. Kumo of Ichimoku can be best use to get important support & resistance levels.. I'll code Kumo in my next version of Doda-Donchain.
Now, what next. Although, the price is rising, but Doda-Donchain line is flat. If it continues to remain flat, it will attract price. That means we can see its price around $47 in coming days. Howe…

Technical analysis of EURUSD Weekly Chart

EIRUSD is range bound from the last so many days, not giving any clear signal. Let's look out why and when will it give clear signal.






This is weekly chart of EURUSD with Doda-Donchian indicator. I've added Kumo of Ichimoku indicator also. For those who are new to Ichimoku, this is one of the best Japanese indicator, you can have. I'm fan of its Kumo lines.
If the price is above kumo, the chart is in bullish phase.
If the price is below kumo, the chart is in bearish phase.
and if the price is inside kumo, the chart is range-bound.
Right now, on weekly chart, EURUSD is inside kumo. That's why you see range-bound movement of its price. Till it does not get out of kumo, you will not witness any clear trend.
On the upside, it's major resistance is @1.3510 and on the downside, its major support is at Doda-Donchian line @1.3079 and then @1.2785. Closing on either side above/below will start another trend.
Till  then, it will move here and there. So, don't forget to mark…

EURUSD H4 Technical chart 16 Dec 2010

This time I'm analyzing technical chart of EURUSD on H4 time frame using Doda-Donchian and Ichimoku indicators.





As it is clearly seen in the chart, that price did not cross Kumo and faces strong resistance there, whether it is crossing above kumo or below kumo. That's why we're seen range-bound movement of EURUSD in last few days. This time it's trying to cross below kumo. It's downtrend will start if it CLOSES below kumo, which is it's support 1 as on Dec 16 2010.

EURUSD Technical Chart 10 Dec 2010

This is one of the example to use Doda-Donchian and Ichimoku indicator together.
From the last couple of days, we've witnessed range-bound price movement in EURUSD currency chart. Still, no one knows which position to take. The solution lies in Ichimoku indicator.





I've plotted Doda-Donchian and Ichimoku indicators in above chart. Just look at Kumo in the chart. The bottom line is flat. As explained in many of my previous posts, flat lines will always ATTRACT price. So, in this case, chart suggests that price will come down in coming days. So, avoid any long position till the price closes above kumo i.e. 1.33017 and confirmed by Doda-Donchian.

Doda-Donchian ver 2.0 Released

Based on the feedback and some pending features, I'm releasing Doda-Donchian version 2.0 today. Showing sample chart of EURUSD on time frame H4 with Doda-Donchian 2.











Changes in this version from ver 1.0

Instead of dotted red-line, I've used solid blue line. Red color has been used elsewhere.
Shows all the information on top-right corner of the screen instead of bottom-right. This will not interfere with your chart on the screen.
Another feature I've added in this version is support and resistance lines (dotted red and green lines on screen) with their value on top-right. These values are based on pivot points and Fibonacci levels. If the price crosses Resistance 1, there are strong chances, it will move till Resistance 2. Similarly, if the price fails to get support at Support 1, it's next target will be Support 2.
Just right-click on the following link and choose Save File As or Save Target As...

Download ver 2.0 from here



Please share your feedback on this in comments s…

600 Pips in 5 Trading Sessions in EURUSD Pair

This is one of the simple way to earn profit in forex market. No need to see fibo levels, fundamental news like unemployment data, confusing yourself in tons of lines on chart. Just one single line with one indicator - Doda-Donchian indicator.
One example is latest EURUSD currency pair H4 chart.




The indicator gave sell signal on 23-Nov-2010 @1.35853. Without any major upside, it moves downwards, thanks to Ireland problem, it's currently trading @ giving a profit of 600 pips in just 5 trading sessions.
It's moving now to get support @1.29249
Can you get any other simple successful Forex trading strategies?

Sensex Next Week - 28 Nov 2010

Sensex is in downtrend from the last so many days. After reaching its all time high few days back, it is giving blood red on dalal street. Housing loan scam has also hit the market badly and some bad news relating to same is expected next week.
But we're here to analyze technical chart of Sensex using Ichimoku indicator.







On Friday, Sensex closes below Kumo level giving kumo breakout on downside. That means it will give BIG correction next week. The support will come around 18,300 when Chikou Span (CS) will find support around kumo. That will be right time to invest for long-term.

Pfizer Inc. (PFE) Chart using Doda-Donchian

You can use Doda-Donchian indicator not only in Forex market but also in stock market. I'm giving you an example chart of Pfizer Inc. listed in NYSE.












The indicator gave Sell signal on 4th Nov. 2010 @17.33, when the price closes below the Doda-Donchian line and from there it moves downward daily. On last trading session, it closes on 16.47, resulting in about 5% profit in less than 1 month. The chart is still in its downtrend movement and will move further down.
The same indicator gave Buy signal in its last bull run (not shown in chart), but you can easily see that the price was trading above Doda-Donchian line in that period.
Share your doubts and feedback in below comments section.

EURUSD Technical Chart H4 - 27 Nov 2010

Let's analyze the technical chart of EURUSD as on 27 Nov 2010 using Doda-Donchian indicator. I've used Doda-Donchian ver 2.0 here. I'm still coding it for further improvements. Once finalized, I'll share the MetaTrader MQL indicator with you here. Just keep in touch and subscribe to newsletter.


Without going into analyzing number of lines, retracements, support and resistance, this indicator gives buy and sell signals from a single line. If the prices CLOSES below the red line, take short position, and if the price CLOSES above the red line, take long position.
I'm emphazing on CLOSING of the price and not just movement of price above or below the red line.
Secondly, this indicator gives best results on longer time frame like H4. Those who think they can make money only in M15 or M30 timeframe, just open your mind and see the above chart.
Doda-Donchian indicator gave Sell signal on 23-Nov-2010 @1.35853 and it started its downward journey from there, giving a profit of …

Technical Chart of EURUSD - 24 Nov 2010

EURUSD is really in problem with its continuing downside correction. Issues like Ireland problem, and latest Korea problem can give severe jerks to it in coming days. But who cares for fundamental issues when we can analyze technical chart in simple way.


Here is EURUSD chart on time frame H1 for 24 Nov. 2010

EURUSD Technical Chart



I'm using here Doda-Donchian indicator posted earlier few days back. The price closes below Doda-Donchian line on 22-Nov-2010 at 13:00 and that was signal for short-selling. The result is around 300 pips profit in 2 days. Not bad at all.
Just want to add one more line here. Investors are generally afraid of using higher time frame like H1 or H4 and stick to M15 or even M5 chart. The result, you very well know, is loss of money and confidence. Just open your mind and try to learn something new. You can always try these on your demo account before you apply them on real account.
Got any queries. Ask now and I'll be happy to answer them.

Nity Weekly Chart - 18th Nov 2010

We've witnessed a correction in Indian stock market in last few days. Nifty has come down considerably from its all time high formed few days back. Fundamentally, we can talk of asian market correction, high inflation figures, EURO problem etc. But such news are always in the market. Without going into these discussion, let's see the technical chart of Nifty to get its target.



Leave the number of colored lines in this chart. Only two lines are important at this time.
1. Kijun-Sen of Ichimoku: Although the price was rising in last few days, but the kijun-sen line was flat, thus not supporting the bull run. Result, the gravitational force of kijun-sen will attract the price and Nifty will kiss this line, which is currently around @5550.2.
2. Double smoothed stochastic: On the bottom of chart, the stochastic line is in over-bought mode. This will come down below, resulting in Nifty correction.

Doda-Donchian Indicator with stop-loss feature

This is the modified version of Donchian channel indicator, popularly known as famous turtle indicator. I've modified it after removing 2 lines. The result is a single line, making a simple but one of the powerful indicator.
Buy: When price closes above Doda-Donchian line
Sell: When price closes below Doda-Donchian line
Stop-loss: Few pips away from Doda-Donchian line.
Works with any currency pair, CFD etc.

Recommendations:

Use higher time frame like H4. It works best there.
It happens many times that price kisses Doda-Donchian line, so it may triggers your stop-loss. So, place your stop loss few pips above / below this line.
Even if price moves above or below, that does not make any sense for change of signals. The candle MUST close above / below for confirmation.
Download Doda-Donchian MQL4 source code file

Download Doda-Donchian compiled file

Doda-EMA MetaTrader Indicator

Here is a MetTarder indicator developed by me based on Exponential Moving Average (EMA). This indicator gives buy, sell and exit signals based on following rules.






The rules are simple.

Buy : When EMA7 > EMA14 and EMA7 > EMA21 and EMA14> EMA21
Sell: When EMA21 > EMA7 and EMA21 > EMA14 and EMA14 > EMA7
Also, shows lines on chart on gives signals.
Shows no. of pips passed in bracket after giving signal.
Works on all currency pairs and time frames.
Recommendations:
Always use stop-loss based on your risk-profile or by another indicator like Parabolic SAR.
Cut your losses small & ride the profit long.
Download

Download MQL4 File
Download Compiled File

Is it the beginning of correction in Sensex?

Yesterday, we saw correction in Sensex with huge volume. Nothing new. It happens from time to time in Bull market. But looking at technical chart of Sensex using Ichimoku indicator shows different picture altogether.





The sensex closes below Kijun-Sen level resulting in first signal of correction. Also, tenkan-sen crosses kijun-sen line further confirming the sell signal. So, you can expect some correction in the market in coming days.
Coming to levels of support, the first level of support is at 19,000 and next level support, shown by chikou span line is at around 18,000. Place your strict stop-loss and try to exit from profit making shares now.
Another strategy can be, buy more shares or mutual fund units in correction phase, if you're a long-term investor. This will average your purchase price and you'll get more assets in your portfolio.
If you've any doubts on this topic, mention your query in comments section below.

Updates on IFCI & NTPC Technical Charts

Both IFCI & NTPC charts have formed a common pattern w.r.t. future kumo as per Ichimoku indicator.



Let's start with IFCI first.


There are 2 major points in this chart. Although price is moving upwards, but kijun-sen line is flat from last so many days. This line does not justify the rise in price of IFCI. We've already seen many examples, when Kijun-Sen line is flat, the price comes to atleast that level.

Secondly, see future kumo. The bottom line of future kumo is also flat. That means, price should come down in future.
Both the factors indicates that in coming days, we may witness price of IFCI can come to Rs.66-Rs.67 levels.  If the price closes below this line, we've see further downside.






The same pattern has been formed in NTPC chart. The bottom line of future kumo is flat, signifies that price will come down significantly in coming days. Watch out the levels of Rs.200 carefully. if the price & Chikou Span (CS) closes below this level, we will see further corr…

EURNZD Technical Chart - Forex

Although EURNZD currency pair is moving up from last so many days but 2 things on its daily chart are not supporting this move.

Here is the daily technical chart of EURNZD. I've put Ichimoku, Donchian Channel (Dotted blue line) and Aroon indicators. Dark blue line is Kijun-Sen of Ichimoku.




As indicated by Aroon indicator, the price will come to its first support level viz. Donchian line @1.830 in coming days. If Kijun-sen line of Ichimoku indicator stays flat even then, as it's now, it will come to level of Kijun-Sen @1.8025.
Flat lines always attract price.  That's the basic rule of using Ichimoku.

Major support levels of Sensex & Nifty

I'm getting lots of queries from investors as we've witnessed some correction in Indian stock market last week. So, I'm posting technical charts of Sensex & Nifty to get major support levels. I'm using Ichimoku Kinko indicator in daily charts.

Let is first see the daily chart of Nifty.





The price is well above kijun-sen line & Kumo. The future kumo is also bullish clearly stating that we're still in bull run. Kijun-Sen is currently around 5940 level. If Nifty closes below this level, just exit from your long-positions. That will be first sign of weakness in market. But do not take any short position. If Nifty & Chikou-Span (CS) closes below kumo, that will be right time to take short position. Will give you illustration on that if that happened.
Now, let us see the daily technical chart Sensex using Ichimoku indicator.




Here also, Sensex is well above Kijun-Sen line. The first support level of Sensex is currently at 19,760. So, make a strict stop loss …

NTPC Technical Chart using Ichimoku

NTPC on NSE India was trading between the range of 192-202 for most of the time. Now, it has come to Rs.220. Let's analyse the reason for it and future prospects of this company using Ichimoku Kinko technical indicator.









On 13th Sep. 2010, price closes above kumo, which was acting strong resistance for quite some time. At the same time, chikou Span (CS) also closed above the price - resulting in Kumo breakout.
The price started rising above along Tenken-Sen line. It's now trading at around Rs.220 level.
One important thing to notice here is that although price is rising, but Kijen-sen line is flat.
Whenever Kijun-Sen line get flat, the price always gets attracted to it.

That means, the price of NTPC can come down to Rs.205 level. If it sustains there, it will move upward again. If not, it will come down more around Rs.198, which is first line of Kumo.
Got any doubt? Please share your thoughts on this topic in below comments.









Kethley Instruments : NYSE:KEI finding support on Kumo

From the starting of this year, Kethley Instruments Inc., New York Stock Exchange (NYSE) listed stock is in bull run. Let's try to find out the reasons for the same from technical analysis using Ichimoku indicator.







The price closes above kumo around 8th Jan 2010 at around $5.2. Chikou Span (CS) also managed to close above kumo at that time, resulting in Kumo breakout -a strong bullish signal.
It started rising without any major correction. Since then, it got support 5 times on kumo and always bounced back from there to rise further.
At the time of writing this article, it is trading around $12.4.
One more important thing to watch here - the thickness of Kumo. It's thin; that why it is getting support on lower kumo line, most of the time.
Secondly, although price is rising, but Kijun-Sen line is flat, which means it'll attract the price. So, price may come down to Kijun-Sen line i.e. $8.7 in next few days.
If it closes below Kumo, book your profit & exit from it.
Take …

Kumo Breakout in Silver Chart - Technical Analysis

Today when I saw the technical chart of Silver, only one word comes to my mind - Kumo Breakout.

Let's find out what's that & why silver is trading at all time high.


I am using snapshot of Silver chart from MetaTrader software using Ichimoku indicator.


Around 26th Aug 2010, Silver price closes above Kumo and at the same time Chikou span (CS) also closes above kumo.
When both CS & price closes above kumo, just buy that without any doubt. That's a signal that price will surely move upwards now. Just keep the Span A and Span B lines as your stop-loss in the beginning & then later on Kijun-Sen figure as your trailing stop-loss. You can use ParaBolic SAR value also as a trailing stop-loss. Whatever you're comfortable with, but don't trade without stop-loss & then trailing stop-loss.

Coming back to Silver chart, one should place trailing stop-loss of Kijun-sen in it while trading.
Hope you like this article. if you've any doubts on it, please discuss t…

Koutons Retail India Ltd. is in bearish mode

I just saw this chart of Koutons Retail (India) ltd. The chart is in correct mode from last several days. All the reasons are very clear for it as far as technical chart is concerned.
Let's analyze the position of Tenken-sen, Kijun-Sen, Chikou Span & Kumo lines in this chart.

TS crosses Kijun around mid of August 2010. That was the first signal of weakness. Just after 1 trading session, the price & CS closes below kumo, thus confirming to take short position in the chart.
Around 6th of Sept. 2010, the price tried to cross kumo, but failed.
Kumo lines acts as strong resistance for any stock, if the price is coming from below.



Result: The journey of the stock price to southward direction continues & is still down.


When to book profit: If you've taken short position in this stock, book your profit, when price closes "above" kijun sen.
Take long position ONLY when price & CS closes above kumo.
If you have any doubts on this discussion, ask your query below …

EURUSD Forex H4 Technical Chart

Today, we'll analyze the forex chart of currency pair EURUAD on H4 timeframe using Ichimoku & Bollinger bands indicator. Let's see why it is rising from the last so many days without any major correction.
Here is a technical chart of EURUSD.


Around 13th Sep 2010, price closes above Kumo after tenken-sen crosses Kijun-sen. That was the first signal to buy. At the same time CS also closes above Kumo, therefore, confirming the start of bullish run.
We'll not take any bullish call if CS does not close above kumo.
Now, the bullish signal is also confirmed by Bollinger Bands - signified by Blue dotted line. This is a variant of Bollinger bands used by many others.
From 18th to 21st Sep. 2010, the price tries to come down, but Kijun sen hold them. Kijun sen always acts as support line for price. Result: Strong bullish run.
When to book profit: When price closes below Kijun Sen, that will be right time to book profit & exit. Till then, just ride the bull.
The price will take…

Bursa Malaysia Kuala Lumpur Composite Index Technical Chart – Bullish

This is one of the perfect example of Kumo breakout. The FTSE Bursa Malaysia Kuala Lampur Composite Index is in bullish mode since July 2010. Let's study the technical chart with Ichimoku indicator.





On 18th June 2010, Tenkan Sen crosses Kijun Sen below Kumo. Since the cross was "Below" kumo, it was a weak bullish signal. Result: Price faces resistance & can not cross kumo.

On 28th June 2010, it gave Kumo breakout as prices manages to close above kumo at 1325.54 but Chikou Span (CS) was below Kumo. In fact, price came below Kijun Sen but finds support on Kumo.

On 6th July 2010, price managed to close above Kijun Sen & around 14th July Chikou Span(CS) also managed to close above Kumo. That was the golden chance.

Whenever, price & CS closes above kumo, just buy that stock & put a stop loss of Kumo.

Result: Strong bull run & it reached the high of 1479 also.

Book your profit when price will close below kijun sen & take short position when price &…

Reliance Industries Ltd. (RIL) faces resistance at Kumo

We all have witnessed Sensex rally in last few weeks. Major stocks have participated in this rally except the big one - Reliance Industries Ltd. (RIL). Let's see the reasons below.

We're taking the technical chart of RIL using Ichimoku indicator.



The first resistance it had on around Rs.1,000 mark - the kumo resistance. Chikou Span (CS) tried to cross it twice in the beginning of July 2010, but failed; although closing price managed to close above kumo. But real kumo breakout rule is when CS AND pricer closes above kumo.
Now again, 4 days back, CS failed to cross kumo lines again. The closing price also failed to cross Kumo. Now, the price is moving downwards, where it will get its first support on Kijun sen line.
Clearly, Reliance will move upward ONLY when CS & its closing price closes above Kumo.

Technical Analysis of Gold - Daily Chart

Gold is rising almost daily & currently trading at $1273 at the time of writing this post. Let's see the reasons for it & also trying to find out the major support levels of Gold.


Here is the technical chart of Gold using 90 days Simple Moving Average (SMA), Donchian Channel, Double smotthed Stochastic. I've used ADX candles instead of normal candlesticks.
On 6th August 2010, Gold prices closes above 90 days SMA & Donchian Channel. That gave the strong Buy signal. Generally, 90 SMS is similar to Kumo of Ichimoku cloud & Donchian Channel is similar to Kijun sen.
The action is confirmed by double smooth stochastic, which crosses & move above 20.
The result - another upward rally of Gold & currently trading at $1273.
Support Levels
Gold will find its first support at Donchian line which is currently around $1236 & 90 SMA denotes $1217. If the price "closes" below these 2 support levels, you can take short position, as you'll witness corre…

Why Sensex is rising?

Let's analyze why Sensex is rising from the last 3 months. We'll take the help of one of the best indicator & my own favorite one - Ichimoku.


On 14th June 2010, at 17,338, sensex crossed the kumo and this is called "Kumo Breakout". At the same time, Chikou Span(CS) also crossed the kumo, thus confirming the same. So, the result - upward rally.
At the end of August, price started falling down. But Sensex got support on Kumo & on 1st Sept., 2010, price crosses Kijun Sen. Adding to it, on 6th Sept, Tenkan Sen crosses Kijun sen. And the rally is still on.
Till, price is above Kumo, it will continue to rise. The day it closes below kumo, one can exit long position & can take short position.