Sunday, 16 August 2009

Message 2 - Technical Analysis

I've attached below my daily and 3hourly (Oanda uses 3H and not 4H for some reason) charts. The quality is not great, but you should get an idea of what I am looking at. Oanda aren't the best for charts, but it makes it easier for me to have the charts and my trading package together.

I use yellow trendlines for the daily chart and blue trendlines for the 3H chart.

Points to note from the charts:
  1. Since the low on April 21st we have been in an uptrend.
  2. However since the pullback on May28th we have been in a choppy sideways range with an upward bias which was confirmed by the new high on August3rd.
  3. On the 3H chart we can see an upward trendline in place touching the lows from July30th, 11th Aug, 12th Aug - which is currently at around 1.4150.
  4. We can also see that from Aug 5th we have been in a short pull back with lower highs which are connected by a falling trendline.
  5. I am ignoring Fib levels at the moment as in my experience in a choppy sideways market they have little significance compared to a trending market.
Therefore, from a technical stance I am looking for a long from the bounce on the 3H and daily rising trendline at around 1.4150 which has the bonus of being a round number.