Thread: Candlestick Trading

Traders often suffer from Paralysis by Analysis: indicators and studies have become increasingly complex, often serving to confuse more than assist in making sound trade decisions. Candlestick analysis looks to simplify matters, basing trading decisions on the purest of gauges of market mood – the price action itself. This forum is a dedicated venue for traders to share their ideas on applying Candlestick analysis to currency trading.

Hello everyone

Unfortunately, the original Candlestick Trading thread was deleted and at this point there is no way to recover the lost content. I apologize for the inconvenience to everyone that diligently contributed to this forum and invite all of you to continue posting content on this new thread.

Happy trading,

Ilya

The latest candlestick weekly has been posted and can be found here:

US Dollar Carving Out Bottom Against Most Major Currencies

The daily chart of EURGBP is picking up steam leading into the end of the month bouncing from fibonacci, and I believe we will see a trend line over shoot while remaining in a longer term down trend...

Hee's the daily chart --->

The daily chart of GBPJPY keeps dragging lower leading into the end of the month, this is a clear signal price will likely end the month lower.... I think this pair could be on the edge of a nice fall ...

Here's the daily chart ---->

Originally Posted by brad_1199

The daily chart of GBPJPY keeps dragging lower leading into the end of the month, this is a clear signal price will likely end the month lower.... I think this pair could be on the edge of a nice fall ...

Here's the daily chart ---->

Brad, great call on GBP/JPY...congrats! Thanks for posting that here. I appreciate it. Keep up the great work.

The daily chart of GBPJPY continues to push into the down side without a reversal candle in site yet... Price is just now dropping beneath initial fib supprt at 152.63 and looking for a continued drop into the next stronger support zone at 146.16 ---//--- There is also a long term fib support level at 148.15 which should draw price in like a magnet now that we have clear down side momentumon the daily chart.. I am short and looking to target 148.25 and 146.25

Here's the daily chart of GBPJPY again ---> Looks ripe for intra-day bears





This is a daily chart of GBPJPY showing how I would like to see price interact with fib levels over the next month if I get lucky .....

Originally Posted by Sean Hyman

Brad, great call on GBP/JPY...congrats! Thanks for posting that here. I appreciate it. Keep up the great work.

No problem Free Money For aLL ... lol

Hello everyone.

Here is the latest update on GBPUSD:

British Pound Drops Below Initial Support Against US Dollar, Sell Entry Ahead


Ilya

Originally Posted by Ilya Spivak

Hello everyone.

Here is the latest update on GBPUSD:

British Pound Drops Below Initial Support Against US Dollar, Sell Entry Ahead


Ilya

As an addendum, a trade-weighted average of the sterling's value topped out on 08/05 and has been trending lower ever since, with prices currently down just over 4%. Tellingly, a Credit Suisse index gauging traders' 1-year Bank of England interest rate increase expectations (as derived from overnight index swaps) topped out on the very same day. Meanwhile, the pound is diverging sharply from risky assets, losing much of its near-term correlation to broad stock and commodity indexes. This could open the door for a massive selloff ahead.

Originally Posted by Ilya Spivak

As an addendum, a trade-weighted average of the sterling's value topped out on 08/05 and has been trending lower ever since, with prices currently down just over 4%. Tellingly, a Credit Suisse index gauging traders' 1-year Bank of England interest rate increase expectations (as derived from overnight index swaps) topped out on the very same day. Meanwhile, the pound is diverging sharply from risky assets, losing much of its near-term correlation to broad stock and commodity indexes. This could open the door for a massive selloff ahead.

Ilya, thanks for the heads up on that trade. Great work! Always appreciated.

The daily chart of AUDCAD looks like its got a clear 5 wave decline in place followed by an ABC correction which is almost finished.. In Elliott Wave terms the clear 5 wave drop represents a likely trend change into bear mode and therefore I am looking for resumption of the move lower back towards the previous low at .8794 ---//--- The 61.8% retracement level of the 5 wave decline is proving to be formidable resistance but it looks like we'll see a quick pop just above there to the 76.4 retracement level at .9251 to find the exact top before a move back to .8794 --//--

I have short entry waiting at .9230 with a stop in place at .9285 and a medium term target .8800

Here's the daily chart and the 8 hour chart --->

Watch to see if the pair can close on either side of these recent long wicks to the right of the chart (which would be beyond the black horizontal lines).

The long term wave structure of GBPJPY is bearish and looks incomplete to me.... Price is also running into a nice thick chunk of fibonacci resistance around the 160.00 level that looks like it could end this bullish rally seen for most of 2009..... Knowing the Yen crosses, we can expect some volatility at a major market turning point.. I wouldn't be surprised to see the current decline head a little lower before it pops back upward to form the right shoulder of a long term head and shoulders pattern before heading to a new multi-year low....

WEEKLY CHART --------------->

Just a little bit of speculation here for the monthly chart of USDCAD