Analysis and Trading Plans for FOREX pairs, S&P, DJIA, etc.

August 7th 2011: Megaphone Chart Pattern at USDCAD

An interesting Megaphone (or Broadening Triangle) chart pattern appeared at the USD\CAD 30-min chart. This is generally a reversal pattern which suggests that a bearish trend is about to begin. It may also turn out to be a Diamond chart pattern which is one of the strongest reversal chart patterns ever. If this is the case we will enter a short trade on the upper trend line of the diamond, and will enter a short trade in a breakout of the pattern.

August 5th: Long Signal at GBP\JPY

After a strange-looking Double Bottom, price has broken the trend line and created a very accurate pullback combined with a morning star candlestick pattern that is a very strong long signal. You can enter right now with stop loss below 127.306. Price has already reached the projected target, but it may do that again so a long signal may be a good trade.

August 2nd, 2011: Wedge at GBP\JPY, +320 Pips at EUR\JPY

First of all I'd like to begin by showing you that the trade we have recommended on Friday has already progressed and reached its profit target which is +320 pips :)

Bullish Wedge at USD\CHF, Channel at EUR\USD

An descending wedge can be seen at the USD\CHF pair right now, and its upper trend line was tested before so it is a strong one.

Ascending wedges are usually a bullish signal, meaning that price may break the upper trend line and change the direction upwards. However this is not so accurate chart patterns so we advise against taking signals and trading it.

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