Multiplex

GBPHUF, Daily, 2011 July 22
GBPHUF, Weekly, 2011 July 22

See #195, please.

Will Carry Trading at GBPHUF come to an end?

Monthly Stochastic & MACD Divergence with an upwards moving of RSI.

See p.9, #121

This can not be: Target @ 4.5343! Sorry!

Exit @ 4.4976

Profit: + 266 pips

GBPPLN, H1, 2011 July 22

Trend Lines

Trendlines are just one of the tools seasoned traders use along with other indicators to provide a reliable Forex entry signal.
Plotting a trend line on a Forex chart could give very valuable information.

Trade Example:
EURUSD, M30, 2011 July 22

Trend Lines

Trend lines are probably the most common form of technical analysis. They are probably one of the most underutilized ones as well.
If drawn correctly, they can be as accurate as any other method. Unfortunately, most traders don't draw them correctly or try to make the line fit the market instead of the other way around.
In their most basic form, an uptrend line is drawn along the bottom of easily identifiable support areas (valleys). In a downtrend, the trend line is drawn along the top of easily identifiable resistance areas (peaks).
How do you draw trend lines?

To draw trend lines properly, all you have to do is locate two major tops or bottoms and connect them.
What's next?
Nothing.
Uhh, is that it?
Yep, it's that simple.
Here are trend lines in action! Look at those waves!

http://babypips.cachefly.net/school/...es-example.png

Types of Trends

There are three types of trends:

 

1. Uptrend (higher lows)
2. Downtrend (lower highs)
3. Sideways trends (ranging)

http://ads.babypips.com/newads/www/d...&cb=75fc022837

Here are some important things to remember about trend lines:

 

1. It takes at least two tops or bottoms to draw a valid trend line but it takes THREE to confirm a trend line.
2. The STEEPER the trend line you draw, the less reliable it is going to be and the more likely it will break.
3. Like horizontal support and resistance levels, trend lines become stronger the more times they are tested.
4. And most importantly, DO NOT EVER draw trend lines by forcing them to fit the market. If they do not fit right, then that trend line isn't a valid one!

Previous Lesson Mark Lesson Complete Next Lesson

 

1. Support and Resistance
2. Trend Lines
3. Channels
4. Trading the Lines
5. Summary: Support and Resistance

Read more: http://www.babypips.com/school/trend...#ixzz1Sqpo5TXt

Trend Lines

Link:

Forex Trend Lines
http://www.forextrendline.com/
Forex Trend LIne Book. Series of Free Forex ebooks
http://www.trendlinebook.com/

Trendline Forex Entry Signal - Two High Probability Setups

By Michael A Jones

A reliable Forex entry signal usually involves a combination of factors which all come together at the same time.
No single indicator can provide the ideal entry level and the new Forex trader has to grapple with this stark reality. Many find this hard to accept and spend countless weeks and months and hard earned cash in search of what could be termed the 'holy grail.'
Learning to trade the Forex is hard work and needs to be treated like a business, the same as any other business. It requires a large investment of time, energy, mental discipline, and a cautious investment of cash until the necessary skills are acquired.
Trendlines are just one of the tools seasoned traders use along with other indicators to provide a reliable Forex entry signal.
Here we spell out two distinct ways in which trendlines can be used safely. Using a higher time frame candlestick chart such as a 60 minute, 4 hour, or even daily chart, a trendline is drawn along the most significant lows in an uptrend or across the most significant highs in a downtrend.

1. Momentum Combo
As price moves upward in an uptrend or downward in a downtrend, it will retrace and bounce off the trendline at certain times. However, using a trendline bounce by itself as a Forex entry signal is too risky. There have to be other factors.
Once you have drawn the trendline you now have a graphical representation of price movement and you will be able to see where price has to retrace to test the trendline once again.
Now use other indicators to see if that level where price would need to retrace to test the trendline combines with other factors.
Calculate your daily pivot points and draw horizontal lines on your chart to mark them.
Run your eyes left on the chart and note if there were any significant highs or lows that formed support or resistance within the last few days. Support and resistance on higher time frames usually provide more substantial reference points.
Use the Fibonacci tool on your charting software and mark retracement and/or extension levels on a variety of swing highs and lows and see if any intersect the trendline.
Also make sure you have the 200 EMA (Exponential Moving Average) line shown on your charts and note whether this also intersects near or at the trendline.
Now if you have a combination of two or three of the above indicators meeting at the same place you have now identified a Forex entry signal that can be regarded as high probability.
Put in your entry order to be take in long at this point where the trendline intersects with the other indicators and set a reasonable target limit for what probably will be a profitable trade.
For a downtrend, simply use the above indicators going the other way.

2. Break Combo
The second way to identify a reliable Forex entry signal using trendlines is to watch for a break of a trendline on a higher time frame such as the 60 minute, 4 hour, or daily chart.
Some traders sent an entry order to go long or short once price has broken the trendline by a few pips. That works for some.
There is however a safer way to trade a trendline break.
It will be observed that often (not always, nothing is absolutely certain when trading the Forex) once price has broken a trendline and moved 15-30 pips, it will come back, retrace, and test the backside of that trendline.
This is where again you use the combination of factors mentioned in the previous strategy.
Look to see if the point at which price may come back to test the backside of the trendline coincides or combines with factors such as:

 

1. Pivot points
2. Previous swing highs or lows marking support and resistance
3. Fibonacci retracement or extension levels
4. 200 EMA

Now when you place an entry order to be taken in at that level you are doing so on the basis of a clearly defined Forex entry signal.
For a graphical example of the above, see the resource box below.
Be aware that trading trendline signals on lower time frames such as 30 minute, 15 minute, or even 5 minute charts are very high risk trades. Price will break these short term time frames frequently during the course of a day and catch a new trader frequently by luring them into a trade they later regret.
Be patient and wait for things to setup as described in the two methods above for high probability trades triggered by a combination Forex entry signal.

Article Source: http://EzineArticles.com/554626

Forex Technical Analysis

1. What is Market Trend?
2. Types of Trends
3. Trend Classifications
4. Information About Trendlines
5. Trend Analysis and Timing
6. Drawing Trendlines
7. Trendlines I

1. Trendlines II
2. Trendlines III
3. Channel Lines
4. Find Price Support Levels
5. Finding Price Resistance Levels
6. 50% Retracements
7. 33% and 66% Retracements

Drawing Trendlines

http://static.forexyard.com/images/t...s/chart_p6.gif

http://www.forexyard.com/en/drawing-trendlines

Trend Line Break Forex Reversal Strategy

Forex Reversal Strategies
Written by Semmy Le

For short entries, draw a trend line connecting the support bottoms and wait until the support trend line is broken. Always wait until the candle is completed (use closing prices to avoid fake entries). Then enter a short position in the market. Place stop loss 2 pips above the entry candle.

Take profit strategy for short positions: When a candlestick occurs whose range is greater than the previous three ranges and whose close is in the bottom 15% of the candle, exit a short position on the FIRST closing price that is higher than the previous closing price. (see example below)

For long entries, draw a trend line connecting the resistance tops and wait until the resistance trend line is broken. Always wait until the candle is completed (use closing prices). Then enter a long position in the market. Place stop loss 2 pips below the entry candle.

Take profit strategy for long positions: When a candlestick occurs whose range is greater than the previous three ranges and whose close is in the top 15% of the candle, exit a long position on the FIRST closing price that is lower than the previous closing price.

Preferred Timeframe's

1 Hour and above

Currency pairs

Any pairs of your choice

Euro/Dollar 1 Hour Short Entry Trading example

http://www.fxtsp.com/images/stories/...orex-strat.gif

We draw a trend line connecting the support bottoms. Then there's a 1 hour closing price below the rising trend line and we enter a short position in the market.
The short entry price: 1.2336. Stop loss is placed 2 pips above the breakdown 1 hour candle at 1.2372. Total trading risk: 36 pips.

Profit Target Strategy

We closed this particular trade at 1.2208 for a 124 pip profit.

The EUR/USD short trade

http://www.fxtsp.com/images/stories/...tratprofit.gif

The green square indicates that the exit condition has been met > Candle's trading range (price high - price low) greater than three previous ranges and a closing price in the bottom 15% of the candlestick. The yellow square indicates the short trade exit. Closing price greater than previous candle's close.

http://www.fxtsp.com/trading-strateg...-strategy.html

Pending Order
AUDUSD, Daily, 2011 July 23

Sell Limit @ 1.0898 (DR1)

Take Profit @ 1.0634 (DS2)

Pending Order
CADCHF, Monthly, 2011 July 23

Sell Limit @ 0.8631 (Daily mS1)

Take Profit @ 0.9880

I'm not a friend of stop loss but in this case I would set one.

Pending Orders
EURUSD, Daily, 2011 July 23

Sell Limit @ 1.4626 (DR1) / 1.4721 (mR3) / 1.4815 (DR3)

Take Profit @ 1.4217 (DS1) / 1.4028 (DS2)

Note:
The Daily Pivotals have adjusted accordingly.

Pending Order
NZDCHF, H4, 2011 July 23

Buy Limit @ 0.6945 (DS3)

Take Profit @ 0.75 (EMA200 Weekly)

Currency index

The currency index represents the evolution of a currency relative to the entire forex. The index is the average of one currency compared to others. The chart representation makes it easy to view trends by currency.

Link
http://www.forexticket.co.uk/en/fore.../c-index#trypt

Correlation table

The following tables represents the correlation between the various parities of the foreign exchange market.
The correlation coefficient highlights the similarity of the movements between two parities.

 

1. If the correlation is high (above 80) and positive then the currencies move in the same way.
2. If the correlation is high (above 80) and negative then the currencies move in the opposite way.
3. If the correlation is low (below 60) then the currencies don't move in the same way.

http://www.forexticket.co.uk/en/tools/01-01-correlation

GBPNZD, Daily, 2011 July 24

GBPNZD has been set on the Watching List.

Pending Order
SGDJPY, Weekly, 2011 July 24

Sell Limit @ 67.50 / 68.50

Take Profit @ 63.50 / 62.50

...et vice versa.

AUDDKK, H1, 2011 July 24

AUDDKK has been set on the Watching List.

EURRON, Weekly, 2011 July 24

Euro - Romanian Lei at the watchlist, now.

AUDCAD, Weekly, 2011 July 24

Sell Limit @ 1.05

Take Profit @ 0.995

Interest Rates Table (Forex Interest Rates)

Central bank interest rate is the rate at which country's central banking institutions lend short-term money to the country's commercial banks. Interest rates also play an important role in Forex market. Because the currencies bought via broker are not delivered to the buyer, broker should pay trader an interest based on the difference between "short" currency interest rate and "long" currency interest rate.
In the interest rates table you can not only find the current interest rates of 20 different countries, but also scroll back in time and see how and when interest rates were changed by the central banks.
Interest rates of the following countries are covered in this interest rates table: United States of America, United Kingdom, European Union, Japan, Switzerland, Canada, Australia, New Zealand, Norway, Denmark, Chile, South Africa, Sweden, Brazil, South Korea, Russia, Poland, Latvia, Hungary and Czech Republic.


http://www.topforexnews.com/interest-rates-table/


Click the small green arrows above and below the table to see the past rates decisions.
http://www.topforexnews.com/images/I...Rates/left.gif
0.125% †
on 2009-08-12 by 0%
Federal Reserve System

1.50%
on 2011-07-07 by 0.25%
European Central Bank

0.50%
on 2009-10-08 by 0%
Bank of England

0.10%
on 2009-05-22 by 0%
Bank of Japan

1.00%
on 2010-09-08 by 0.25%
Bank of Canada

4.75%
on 2010-11-02 by 0.25%
Reserve Bank of Australia

2.50%
on 2011-03-10 by 0.50%
Reserve Bank of New Zealand

0.375% *
on 2009-03-12 by 0.125%
Swiss National Bank

5.50%
on 2010-11-10 by 0.50%
South African Reserve Bank

5.25%
on 2011-06-14 by 0.25%
Central Bank of Chile

1.55%
on 2011-07-08 by 0.25%
Danmarks Nationalbank

2.25%
on 2011-05-13 by 0.25%
Norges Bank

2.00%
on 2011-07-06 by 1.75%
Riksbank

12.25%
on 2011-06-08 by 0.25%
Banco Central do Brasil

0.75%
on 2010-05-07 by 0.25%
Czech National Bank

6.00%
http://www.topforexnews.com/images/I...t-Rates/up.gif on 2011-01-25 by 0.25%
Magyar Nemzeti Bank

3.50%
on 2010-03-24 by 0.50%
Bank of Latvia

4.50%
on 2011-06-08 by 0.25%
National Bank of Poland

8.25%
on 2011-05-02 by 0.25%
Bank of Russia

3.25%
on 2011-06-10 by 0.25%
Bank of Korea
http://www.topforexnews.com/images/I...Rates/left.gif
Note: Not all 'Unchanged' central bank decisions are included into the above table.
† Federal Reserve set the interest rate range since December 16th, 2008. The average rate is displayed.
* Swiss National Bank interest rate is presented as the average of the rate range.
TopForexNews.com is not responsible for the accuracy of the presented data.

http://www.topforexnews.com/interest-rates-table/