Thread: Trend Line Trading

GBP/JPY DAILY CHART ------>

Update on USD/JPY's bearish "rising wedge" / ending diagonal pattern. The former is the way chart pattern people would describe it...the latter is how Elliott Wave followers would describe the same thing.

Here is the count that goes with the cup/handle theory...

Originally Posted by brad_1199

GBP/JPY DAILY CHART ------>

GBP/JPY is right back up under resistance today on the daily chart... Yesterday I was thinking we might see a quick drop after the bearish engulfing candle left in place on the daily chart, but the market looks content to keep testing resistance for now... The trend is still down, but perhaps it will be a slower move than I have shown in yesterdays chart.. Bears are offered very decent short entry at current prices around the 137.00-138.00 area ---

See if these bearish patterns heads the patterns lower.

Chart pattern guys call this a "rising wedge". Elliott Wave traders call it an "ending diagonal". Both are two terms for the same thing essentially.

An interesting correlation here... OiL has continued to advance as expected climbing ultimately much higher in wave 5 of 5 in a very long term sequence... Seeing as how I expect OiL price to go much higher stiLL, I wonder if this just might push USD/CAD into a new low price below .9056 asweLL... I guess we shaLL see...

The first chart is the annuaL chart of OiL going back to 1859 on which I have extended the price action line to show the final run towards $200/barreL ----->

The second chart shows the current correlation divergence between the price in OiL vs. USD/CAD which looks like it's going to continue to diverge sending both in opposite directions ----->

Hey,

I am interested in Sterling. And i was that the Sterling rally was further encouraged by news that UK jobless claims fell unexpectedly in February in the fastest pace since 19997. The number of people receiving unemployment benefits dropped 32,300 from January to 1.59 million according to the Office for National Statistics in London this morning. This suggests that the economic recovery is strengthening as Britain prepares for a General Election which is due by June.

Just saw this pattern now and its so beautiful that i decided to let you guys see this. Am shot this pair and thinking if this monthly trend line will break. Anyway i covered my position cos monthly trend line is very strong.
Brad, any count on this?.

Hi, one of the most beautiful looking Cup & Handle patterns i see in the FX market. If it will complete of course.

I know that a lot of people expect this pair to break down. That is not excluded of course, however, this is a very bullish continuation pattern and should not be taken for granted. I'm trying to see if it will complete the handle (around 9950 area) and then maybe break out of the handle. Up or down the move is likely to be huge!

P.S. Sorry about the mistake on the chart guys, it supposed to say AUD/CAD :grin:

Originally Posted by bl00dsh0teyes

Hi, one of the most beautiful looking Cup & Handle patterns i see in the FX market. If it will complete of course.

I know that a lot of people expect this pair to break down. That is not excluded of course, however, this is a very bullish continuation pattern and should not be taken for granted. I'm trying to see if it will complete the handle (around 9950 area) and then maybe break out of the handle. Up or down the move is likely to be huge!

P.S. Sorry about the mistake on the chart guys, it supposed to say AUD/CAD :grin:

I'm not so sure that's a cup & handle either. However, the bias should still be to the "up side" until this upward trend breaks down.

Well just posted this in the other a/u forum but may as well through it over here as well.....I'm watching 2 trendlines closely...the upper green and the blue.


It's good to have you back Sean...hope your conference went well.

Always interpret things in light of the daily chart's trend too.

Very short term ascending triangle.

Falling Wedge pattern....a somewhat tricky pattern to get into initially usually...but ultimately ends up being a bullish pattern once the falling wedge finally completes.

Getting long after these usually takes wide stops and a lower number of lots.

Two charts to keep an eye on here.. The daily charts of GBP/CHF and GBP/JPY ---

Both pairs are retracing upwards substantially close to the their repective long term down trend lines.. I have a bearish bias towards both markets.. As price reaches closer and closer to the down trend lines, we should see price action form a top under the trend lines and continue to head lower long term.. However, there is opportunity here in both pairs, be it short or long.. If price does not form a top and head lower while staying under the down trend lines, the only other option is for price to penetrate upward through the trend lines, should that happen, then we will be presented with a long opportunity... A bit more patience is required to obtain a better directional confirmation at this point, but these are deffinately two charts to keep an eye on..