it is a war zone out there!!!!!!

0 comments Saturday, October 31, 2009
The beast is now getting difficult to be traded as it is entrapped within the converging trendlines. Neither bulls nor bears could claim control on the beast right now...

Having said that, I am still bearish biased as the price is making a lower high on the daily chart and most likely will go down to test red lower trendline.

Below is the daily chart as of market closing.

Read On

retracement completed???

2 comments Saturday, October 24, 2009
Engulfing bearish candle on the daily chart shows that the price was rejected by the fib 50% level of the previous downwards move might signify that the bull rally might have been completed.

The price is now rests at the important psychological round number 150.00.

Daily chart as of market closing:

Read On

will the daily resistance holds???

3 comments Thursday, October 15, 2009
The bulls went amok and the beast shot up 412 pips today. I kept aside during the crazy rally and waited for the bulls to be exhausted.

Looking onto the daily chart, the price is now bouncing off the the daily resistance and a shooting star candlestick has been formed on the hourly chart. Should the first hour of New York session drags the price lower, this might means the bull rally have reached it's temporary top; at least for the time being...

Below is the daily and hourly chart at the beginning of New York session (8 pm Malaysia).

Read On

confirmed shooting star???

0 comments Wednesday, October 14, 2009
Once again, the price was rejected by the declining immediate trendline on the H4 chart. A confirmed shooting star formation indicates that the bears are still persistent.

Let us see whether the price could break yesterday's low or not. Below is the H4 chart as of 1 pm Malaysia.

Read On

double bottom or descending triangle???

0 comments Tuesday, October 13, 2009
The bull camp has been yelling "double bottom!!!" since a couple days ago; however, the failure of the price to make a new high seems to develop a variance of descending triangle which is usually an indication of trend continuation.

At best; as long as the price remains within the two immediate trendlines, neither the bulls nor the bears could claim victory....

One of the important trading rules says "Always assume the underlying trend to continue unless proven otherwise." Hence, I went short at the price rejection by the upper trendline and have already covered my position. Below is the H4 chart as of 8 pm Malaysia.

Read On

No trading today...

1 comments Monday, October 12, 2009

Banks are on holiday in both Japan dan USA. Trading volume is expected to be low and price actions could be erratic. I am going to stay out whole day today....
Read On

bearish pennant is still intact...

6 comments Friday, October 9, 2009
Price was rejected by the confluence of the significant round number (143.00) and the top trendline of the bearish pennant. Now a bearish tweezer top formation has developed on the H4 chart and the beast should now go down to re-test the bottom trendline of the pennant.

Only time will time whether the anticipated drop to 136.xx and then 130.xx will materialised or not. Until then, trade wisely, guys......

Below is the H4 chart as 5 pm Malaysia.

Read On

retracement due???

6 comments Thursday, October 8, 2009
A bullish hammer on the daily chart indicates that a retracement might be due; however since the overall trend is still downwards, I will stay out for the time being.

There is a possibility that the price might want to test the two upper trendlines as shown on the chart below. I will watch if the price bounces off the trendlines before going short again...

Happy trading.

Read On

calm before the storm???

2 comments Wednesday, October 7, 2009
The inverted cup and handle that I mentioned on my previous post played out nicely as expected. The price is now stalled slightly above the lower trendline and moving within a very tight range - a sign that a big move is imminent.

Below is the hourly chart as of New York closing (5 am Malaysia)

Meanwhile, a bearish pennant is developing on the daily chart (see below). The chart is whispering loudly on the next direction. To know which direction that the beast will take, learn more here and here.

Read On

inverted cup & handle???

4 comments Tuesday, October 6, 2009
An inverted cup and handle pattern might be in play on the hourly chart; an indication that the beast should continue southwards.

Broken support at the lower trendline should complete the pattern and confirms the sell entry. Minimum profit taking target can be determined by measuring the height of the handle. Below is the hourly chart as of 11 am Malaysia.

UPDATE: The beast is now testing the lower support. Should the beast keep persisting, the price might dive to 136.xx soon. Below is the hourly chart as of 9.40 Malaysia.

Read On

dull monday...

0 comments Monday, October 5, 2009
After the crazy NFP's price action last Friday, today's price movement is a dull affair. No trade today as I was waiting all day for the price to break out of the no man's land.

Until a breakout occurs, the price will be in consolidation mode within the two yellow trendlines. Below is the H4 chart as of 9.30 pm Malaysia.

Read On

go bears go

5 comments Friday, October 2, 2009
The bears are now in charge of the market. I have been selling on rallies even though the past fews days' price actions were quite annoying.

Now I will ride the profit from the half position from the shooting star set up that I mentioned here.

Simple rules in forex trading - in a bear market, just sell the rallies... in a bull market, buy the dips.

Below is the hourly chart as of 8.10 am Malaysia. Expecting a slight bounce at 142.00 before the the beast continues downwards journey....

Read On

bear flag???

0 comments Thursday, October 1, 2009
A bear flag formation has been completed on the H4 chart. The pole height indicates a possibility that the beast might begin it's southwards journey to 133.xx region..... scary, isn't it???

Below is the H4 chart at New York closing today (5 am Malaysia).

Read On