Thread: Do Charts Patterns Still Work?

Originally Posted by Sean Hyman

Brad, love the falling wedge on the USD/CHF and its likely effect upon EUR/USD. Great work here! Awesome!

Hi Sean, Just a quick question.
The chart of the EUR/USD goes back to the 1980's. I thought the Euro was not formed until 1999. Is there something I am missing?

Originally Posted by IRIEMAN

Hi Sean, Just a quick question.
The chart of the EUR/USD goes back to the 1980's. I thought the Euro was not formed until 1999. Is there something I am missing?

Since German data accounts for much of the Euro Zone's output, the old DEM (d-mark) was used to track what the euro would have done before that time.

Originally Posted by Sean Hyman

Since German data accounts for much of the Euro Zone's output, the old DEM (d-mark) was used to track what the euro would have done before that time.

ok, thanks for clarifying. I thought it was something along those lines. Those patterns are good analysis.

Originally Posted by IRIEMAN

ok, thanks for clarifying. I thought it was something along those lines. Those patterns are good analysis.

Glad to have been of help to you.

Yes, I'm excited about the hourly triangle pattern on GBP/JPY that will likely breakout within hours to a day from now max.

The Fed's Beige Book today could give it the opportunity to break as stocks potentially could break one way or the other afterwards. We'll see.

Originally Posted by Sean Hyman

Brad, love the falling wedge on the USD/CHF and its likely effect upon EUR/USD. Great work here! Awesome!

Seems only right to me that people need to be considering alternate situations for EURUSD, everywhere I look all I see is EURUSD bears.... I think EURUSD has potential to hit another yearly high as much as I'd like to sell it myself... I think that long term USDCHF chart really helps bring into perspective exactly what is going on with the U.S. Dollar in the big picture....

Check out the daily chart of EURGBP... The down trend line that had previously reversed price lower has now been penetrated upwards and price looks like it's heading back to major fibonacci resistance at .9164 ---- Price is crossing over the down trend line as I write this post, I expect to see it continue to push a little higher over coming trading days before a quick drop back on top of the broken trend line for a support test... For short and medium term traders, there is up side potential here....

EURGBP DAILY CHART --->

http://forexforums.dailyfx.com/gbp-j...tml#post339928

I guess we have to wait for the bullish candle to form above the boundary. Got to wait for the bounce..

Originally Posted by IRIEMAN

I guess we have to wait for the bullish candle to form above the boundary. Got to wait for the bounce..

IRIEMAN, I'm in at 152.70 and another round at 152.80.

Originally Posted by Sean Hyman

IRIEMAN, I'm in at 152.70 and another round at 152.80.

Man, you are a good trader. I got in at 153.02 . Not as good as your price. stop at 152.16. I got in right at the opening of the 11:00 am candle. I am hoping to take profits at 154.05 for about 100 pips. Lets hope this one plays out.. What would you say is the target?

Originally Posted by IRIEMAN

Man, you are a good trader. I got in at 153.02 . Not as good as your price. stop at 152.16. I got in right at the opening of the 11:00 am candle. I am hoping to take profits at 154.05 for about 100 pips. Lets hope this one plays out.. What would you say is the target?

Thanks. I win some...I lose some. But overall, I do believe I have a long term edge, over time.

The chart's minimum price target is around 154.60ish when projected from the breakout point. It can always go further...but should, over the coming days to week should hit that target I'd think.

Originally Posted by Sean Hyman

Thanks. I win some...I lose some. But overall, I do believe I have a long term edge, over time.

The chart's minimum price target is around 154.60ish when projected from the breakout point. It can always go further...but should, over the coming days to week should hit that target I'd think.

If we are using the base of the triangle as a guideline, then about 150 pips should be the target. However I have drawn a fib retracement and extension using the chart tools and the 1.272 extension is at about 154.39. So I am going to try to target the 154.30 - 154.40 range. Either way , i dont mind just making 100 pips. Whether it plays out partially or fully, as long as i get something, it would be better than nothing. Anyhow, what will happen will happen, its up to the market....

Here is a little pennant that we missed on the EUR/USD Sept 9 2009. Although we missed it, it's a good learning demonstration for new traders in fx. This pennant also broke north which was in the direction of the hourly trend.
Cheers
Irieman.

Hi guys,
Please see attachments of small pennant formation on EUR/GBP. Due to its small size, i believe it is best to trade on a smaller time frame such as a 15 minute graph. Its about to break out any time now....My bias would be to look for a south break as the pair broke an hourly uptrendline and is bearish in my opinion.
I.M.

Hi

I would like to share what I think is a falling wedge happening with the EURAUD on a 1 day chart.

I am guessing this would have an bullish breakout as the EW count seems to be near its end.

Most info is on the chart, but I am guessing that a stop around 1.6600, but it's a bit hard to say right now. I would guess that it would be best to wait and see where the triangle actually breaks out and how it breaks out. This stop info is really just for a bit of feedback.

Looking forward to any feedback, especially if I have missed something or just got it wrong.

Ddaze

Edit
Actually I notice that I have calculated the target price from the top of the triangle, but it should be calculated from the break out point - right?

So the target price should be from the breakout point + the height of the triangle (assuming its a bull) which would put target price more in the vicinity of 1.7620.

mmm..... I am getting a little confused here.... to get target price it is 'height of the triangle' + 'Something' ....I need to go back and check the formulae.

More editing That seems to be the formulae - breakout point + the height of the triangle (assuming its a bull)

Please let me know if I have a mistake. I feel I have.

Thanks
Ddaze