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Showing posts from September, 2011

Today's strategy in EURUSD | 29-Sep-2011

Let's analyze the technical chart of EURUSD currency pair with Doda-Donchian and Doda-Bbands indicators and discuss today's strategy for trading.

As mentioned in my couple of previous posts, EURUSD is trading near its strong resistance area. So, do not take any buy call in this pair. Although, it's trying to break this resistance area, but till now, it fails every time.
The 2 main levels are: 1.36490 on upside and 1.34952 on downside. You can take long position if EURUSD able to CLOSE above 1.36490 OR take short position here if it CLOSES below 1.34952 on H4 time frame. Till then, just wait and watch.
And do not forget to make your appropriate stop-loss.

No long position in EURUSD yet | 28-Sep-2011

Doda-Donchian and Doda-bbands have given buy signal in EURUSD chart as shown below.

The buy signal was given @1.36425. But I don't recommend to take this buy signal as EURUSD is trading near very strong resistance. Infact, one should take long position in this currency pair if the price CLOSES above 1.36490 on H4 time frame chart.
Look at the short position carefully and do not miss that opportunity.

Gold Technical Chart | 26-Sep11

Gold is in bull run in weekly and monthly charts. But its daily chart something else.

This is the technical chart of Gold with Doda-Donchian and Doda-Bbands indicators. They have given Sell signal @1789 and after breaking the important level of 1761.40, Gold is in downtrend. Its major support levels are @1601 and 1552 and on the upside, its resistance is @1728. Watch these levels carefully.

EURUSD Technical Chart | 26-Sep-2011

In my previous articles on EURUSD, I've explained why NOT to take long position. If you've followed that, you can see the weakness in EURUSD chart below.

This is the technical chart of EURUSD with Doda-Donchian and Doda-Bbands indicator. Both of them together gave Sell signal @1.35875 and it started its downward journey from there. At the time of writing this post, the total profit was of about 191 pips.

Watch the support and resistance levels carefully as shown in chart.

EURUSD technical chart | 19-Sep-2011

Let's analyze EURUSD technical chart using Doda-Donchian and Doda-Bbands.

As mentioned in my previous post, EURUSD was expected to come down, although buy signal was given by Doda-Donchian. The main reason was EURUSD was trading near HUGE resistance area and it was not possible for this currency pair to cross that area at one go. Please refer to my previous post for more details.
Now, this morning Doda-Donchian has given Sell signal @1.36562. But the same has not been confirmed by Doda-Bbands yet. So, I suggest you to wait for the signal from Doda-Bbands and take sell position if the price CLOSES below Doda-Bbands line on H4 time frame.
The main support areas for this currency pair are 1.3612, 1.3593 & 1.3571. Watch these levels carefully.

Gold technical chart | 16-Sep-2011

We've have witnessed a correction in Gold prices recently. Let's analyze its technical chart with Doda-Donchian and Doda-Bbands indicators.

Although, I always prefer to trade in H4 time frame. But this is on M30 time frame chart on Gold. Here again, one false signal of Doda-Donchian was opposed by Doda-Bbands and downtrend continues with a profit of 510 pips.

The immediate support levels of Gold are 1722.90 and resistance @1764. Watch these levels carefully.

EURUSD trading near major resistance levels

Today, we'll analyze EURUSD technical chart with Doda-Donchian and Doda-Bbands indicators.

After a downtrend of last few sessions, Doda-Donchian has given a Buy signal on 15-Sep-2011 @1.38028. The same is confirmed by Doda-Bbands. But keep one thing in mind here. EURUSD is trading near major resistance levels. So, I'm not convinced by this Buy signal. I suggest you to either not to take any action now or if you're a aggressive trader take buy call, with strict stop-loss.
Take buy call if the price CLOSES above 1.40050 on H4 time frame chart. The next resistance levels are 1.4106 and 1.41445.

EURAUD Technical Chart | 15-Sep-2011

EURAUD technical Chart with Doda-Donchian and Doda-Bbands indicators.

Both Doda-Donchian and Doda-Bbands have given buy signal at 1.32187 and it has risen after the signal. At the time of writing the post, it has already crossed about 200 pips up. The resistance levels are at 1.34325 &  1.34866.

EURUSD Technical Chart | 15-Sep-2011

Here is a latest technical chart of  EURUSD currency pair using Doda-Donchian, Doda-Bbands and BBSQueeze Dark indicators.

We've witnessed a steep downtrend in this currency pair in last few trading sessions. As expected, which I've already mentioned in my previous post, EURUSD bounced back from its low now.
It's trading near Doda-Donchian line. If it closes above this line, the indicator will give buy signal. Here, I want to highlight one important point. EURUSD major resistance is at 1.3833. Watch this level VERY carefully and take your buy signal if it manage to cross this level AND close above this level. The immediate support level is at 1.3612.

AUDUSD, AUDJPY, AUDNZD technical charts | 14-Sep-2011

AUD currency is in downtrend, so all its counterparts shows the same charts. Let's analyze the integrity of our technical indicators Doda-Donchian and Doda-Bbands based on that. Did they able to show weakness on proper time or not?

This is latest AUDUSD technical chart using Doda-Donchian and Doda-Bbands indicators. You can download these indicators from indicators section of this website.

Doda-Donchian gave sell signal on this chart around 1-Sep-2011. And after 1 week, it started moving upward and gave buy signal. But our another indicator Doda-Bbands was very active and did not support that buy signal. Infact, price faced resistance EXACTLY on Doda-Bbands line and thereafter, both the indicators collectively gave sell signal @1.05438 and it started its downward journey; resulting in a profit of 322 pips at the time of writing this post.
It's support line is @1.0054 and resistance levels are at 1.03085 and 1.03595

Coming to another chart now -  AUDJPY.

Same story here. Doda-…

Positive signs on European Indices | 12-Sep-2011

I just saw the technical charts of main European indices - SMI, OMXS, Madrid, CAC40 etc. Few points are common on all the charts - a) all the charts are in bearish mode b) Senkou Span A line of their future cloud, using Ichimoku indicator, is FLAT.
Here are their technical charts.

CAC40 - Paris


 SMI - Zurich

Well, till now, you might know, that whenever this line is flat, it will attract price. So, one bounce back in European indices in coming trading sessions can not be ruled out. Take your positions accordingly.

DowJones technical chart |12-Sep-2011

Here is the current technical chart of DOWJones using ichimoku indicator.

As mentioned in my previous post on DowJones on 22-Aug-2011, when it was trading near 10854 levels, I wrote that it might go to the level of 11,600 in coming days. It closed at 11,613 few trading sessions back and thereafter resumes its downward journey.  At this point, all the technical factors suggests further downtrend except one Senkou Span A line, which is now future cloud of Ichimoku.
I'll explain more on future cloud component of Ichimoku on some other day. For the time being, just understand, that when Future cloud line is flat, it will attract price. So, I suggest not to take any further short positions and one single positive news in USA will trigger the price to the level of 11600 levels again. Bullish cross of Tenkan Sen and Kijun sen can also be noted down.

Time to book profit in EURUSD | 12-Sep-2011

Here is the current technical chart of EURUSD currency pair using Doda-Donchian, Doda-Bbands and BBSqueeze dark indicators.

On 30-Aug-2011, Doda-Donchian gave Sell signal on this currency pair. On next trading session, it was confirmed by Doda-Bbands; and thus started the downward journey to a total of about 825 pips at the time of writing this post.
In this journey, EURUSD has broken some important support levels and now it's trading near its major support level viz. 1.3612. I suggest you to book profit at this stage as one bounce back from this important level can not be ruled out. Even looking from another angle, a trader sitting on such a HUGE profit should not be greedy and thus control your emotions and convert your screen profit to actual profit. There is always next time.

Explaining importance of stop loss with EURUSD and GBPCHF charts

Make stop-loss every time - it is an old rule but how many of us follow. Sometimes, we don't put stop-loss out of fear of hitting that and sometimes we're over-confident and we don't even think of that. But I'll explain its importance by showing practical examples of forex currency pairs - EURUSD and GBPCHF charts.
This is the latest technical chart of EURUSD on time frame H4 with my all favourite indicators - ADX candles, Doda-Donchian, Doda-Bands, BBSqueeze dark. You may download all of them freely from indicators section of this website.

The price after touching low of 1.40393 suddenly shoot up and touch a high of approx. 4.4290. Such a movement in few minutes. If someone had already taken short call on this currency pair based on Doda-Donchian, more than 50% of profit would have been wiped out. On the other hand, if some trader had make stop-loss, some more profit will be automatically booked by this time.
Let's try to understand the same point by taking anoth…

EURUSD Technical chart updated | 03-Sep-2011

Here is EURUSD technical chart with Doda-Donchian, Doda-Bands and Bbaqueeze dark indicators.

As explained in my previous posts, one SHOULD take any position when both Doda-Donchain and Doda-bands confirmed the signal. In the above chart, both these indicators gave sell signal @1.44181 and without hitting stop-loss, it started its downtrend journey, giving a total of 215 pips (and counting) profit.
Sometimes life and trading becomes so easy. Isn't it?

GBPUSD Technical chart updated | 03-Sep-2011

Here is GBPUSD latest technical chart on time frame H4 with indicators Doda-Donchian, Doda-Bands and bbsqueeze dark.

The main point to look at this chart is that around 24th Aug 2011, Doda-Donchian and Doda-Bands gave sell signal. But after few days, the price moved upward and Doda-Donchian gave buy signal. As I've already explained in one of my previous posts, that to filter false signals of Doda-Donchain, one MUST look at Doda-bands also.
On buy signal given by Doda-Donchian, Doda-bands did not confirm that and it continued with its previous sell signal. Infact, that was false signal given by Doda-Donchian indicator.
The price of GBPUSD moved downside considerable after that.

To summarize, take your long or short positions ONLY when both - Doda-Donchain and Doda-Bands confirmed that.