Long Term Trading GJ, EU

We will cover two currency pairs, GBP/JPY and EUR/USD.

The method that I use is perhaps the simplest out there.

For indicators on chart I use the MACD with default values on 1 hour charts.

And 55 sma on a 1 hour chart.

For support / resistance values i calculate pivot points on an excel sheet using previous year's high , low and close values.

So in effect the values are constant for the entire year.


Pivot levels this year in 2008

GBP/JPY

R3: 253.37; R2: 241.23; R1:233.74
PIVOT: 221.60
S1: 209.46; S2: 201.97; S3: 189.83

EUR/USD

R3: 1.6706; R2: 1.5901; R1: 1.5404;
PIVOT: 1.4599
S1: 1.3794; S2: 1.3297; S3: 1.2492


How to use this data

On chart i use the 1 hour macd and candles to decide the direction and trade between the levels.

As an example, lets take the current trade on tuesday, march 18

GJ is expected to bounce off the 196.76 barrier down to 189.83 or 190 psychological level.


EU is expected to move to R2 first, and if broken then R3 on a longer term trade.

For a day trader this can be pretty boring, but for longer term traders this is something interesting

comments please

Maybe we need another post now?