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Showing posts from June, 2011

Bullish Kumo Breakout on IBM Technical Chart | NYSE | 29-June-2011

Here is a chart of International Business Machine (IBM) listed on New York Stock Exchange (NYSE). I'm using Ichimoku indicator to look inside the chart.
This is the technical chart for the last 3 months.

As you can see, the price took support around mid of June on kumo and managed to go upward. In the last trading session, not only the price closes above kumo but also Chikou Span (CS) managed to close above kumo; thus giving bullish kumo breakout @$170.54. One can now take buy call on this stock with a stop loss of kumo. The immediate next resistance is @173.54
 And this is the technical chart of IBM using ichimoku indicator for the last 6 months.

As mentioned on the above chart, the price took support on kumo twice on around mid of March and mid of June this year. That shows how important the levels of kumo for support and resistance.

Inside USDJPY currency pair Chart | 29-June-2011

In the last topic, I've discussed one of the important rule of forex trading using GBPCHF technical charts. If you've missed that, I suggest you to go through that post first at before you read this article. That will help you to understand things better.
Today, I'm analyzing USDJPY currency pair chart on weekly and monthly time frame. We'll conclude some important trading rule again.
Here is a USDJPY weekly chart using my favorite indicator Doda-Donchian.

The chart says too much of things. Let's take one by one. This currency pair, on its weekly chart, is trading below kumo, indicates inherent weakness of the chart. So, it's suggested NOT to take any "Buy" call and NOT to miss any "Short call".
In around 2 instances, it tried to cross kumo but faced strong resistance there and failed (see the above chart).
 Now, let's see the technical chart of USDJPY on monthly time …

GBPCHF is in major downtrend

I just saw technical chart of GBPCHF currency pair today and amazed to see its continuous downtrend. Sharing its 2 technical charts with you.
The first chart is the daily technical chart of GBPCHF using just 2 indicators viz. Doda-Donchian and Doda-Bollinger.

As you can see, Doda-Donchian gave "Sell" signal on 12-Apr-2011 @1.45751. Doda-Bollinger indicator also gave sell signal; infact before few days. And the downtrend started there. From that day, no looking upward. At the time of writing this article, it's already down by about 1149 pips in just 2 months of time.
Now, let's look at the monthly chart of the same currency pair.

Here again I've used the above mentioned 2 indicators. Doda-Donchain and Doda-Bollinger gave sell signal on 1-Nov-2007 @2.3275 and the downtrend  did not stop, giving a total pips of 9850. That was a VERY good profit.
So, what's the point to learn from these 2 charts?
Always see the chart in bigger time frame. That will help you to …

Doda-Donchian or Doda-EMA Expert Advisor (EA)

Ever since I uploaded the first version of Doda-Donchian, I'm getting number of emails asking for its EA or EA for Doda-EMA. I'm taking this space to answer all such queries.
At this moment, I don't have any EA for any of my indicators. I'm not good in coding EA for metatrader, so you can't expect in near future also. I've already uploaded the source code of all the indicators and you can approach some professional coder who can design EA as per your requirement. I can't refer anyone as I don't knwo anyone personally. It's your call.
Another type of query which I generally get is to modify indicators. Again, either you need to do it yourself or hire some professional as it's not possible for me to modify indicators again and again as per individual requirement. I'll surely add some features like email alert, color change option etc. in their next version.
The next type of email is asking for my phone no. Please note that I avoid mobile pho…

Beginning of downtrend in Dow Jones

Last few days in Dow Jones industrials were not good for long position.Its technical chart shows beginning of downtrend. Let us analyze the technical chart of Dow Jones with our indicator Ichimoku


On 23-May-2011, price closes below Kijun Sen. That was the first signal of weakness and suggestion to book profit in long positions. On 25-May-2011, Tenkan Sen and Kijun Sen also crosses; giving again bearish signal. At the time, Dow Jones was trading @12394.
 The weakness continued further and then few days back, not only the price closes below kumo but Chikou Span (CS) also closes below kumo. That gave bearish kumo breakout.
One can now take short position with stop loss. Exit when price closes above kujun-sen (KS).