Analysis

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

EUR\USD: Pennant Pattern (70 Pips)

A Pennant chart pattern is now present at the major pair of EUR\USD. This is a strong continuation pattern that leads to a continuation upwards. It may also be identified as a Ascending Triangle which is even stronger - and leads to a bullish breakout.

Pattern is 70 pips in size and should be traded in the following way: When price breaks upwards traders can take long trade. Conservative traders will enter at the pullback to the Resistance.

USD\JPY Head & Shoulders Reversal (135 Pips)

A Head & Shoulders pattern has formed at the USD\JPY. This is the most reliable and consistent reversal pattern - it leads to reversal at 95% of trades and is considered 'the king of chart patterns'. Price has already broken the neckline and we would wait for a pullback to join the trade. Target will be 135 pips from the location of the pullback.

EURCAD - Double Top (60 Pips)

A Double Top pattern, slightly dis-proportioned, appeared at the EUR\CAD. The second top is lower than the first - which enforces the strength of the pattern - the buyers did not even reach the previous high, which indicates that sellers are gaining strength.

However, the pattern has not been validated as the neckline was not broken yet.

Trading: Wait for the neckline to break and enter short trade. Conservative traders will wait for pullback to enter a more reliable trade.

100 Pips Double Bottom in USD\CHF

A very precise Double Bottom chart pattern is now present at the USDCHF, at 1-hour chart. Size of the pattern is 100 pips which offers great potential for profits. Price is now struggling with the neckline and after it breaks price is expected to rise to 1.440 which is the target.

The Double Bottom is a highly reliable chart pattern which leads to reversal of trend in more than 70% of the time - this one is especially large and will offer entries with high Risk:Reward ratio.

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