EUR/USD Daily Chart

After EUR/USD was anticipated to go down. It waited for today at least due to jump in the EUR/USD fundamental news which lead the Euro to move north. Still the overall sentiment is bearish as the last three days were having a lower high and lower lows. Three consecutive days in a row. The overall movement is still contained in the triangle formed two weeks ago.

SHI Silver trend signal

The indicator plots red dots and blue dots for sell and buy signals. Of course, if it was simply like that, then we would be all rich. But, the indicator changes color and position. So it may be of some help or confirmation to your already existing forex system, but you can not reply on it alone. All the indicators in this blog can be downloaded here http://www.divshare.com/download/170344-ddc

Support and Resistance (Barry)

Support and Resistance (Barry)



The indicator plots the support and resistance levels.

ZigZag indiactor with fibo retracement

The indicator uses the zigzag indicator and adds to it the fibo retracement numbers automatically. It is very useful in trending markets to identify whether the price is retracing or the trend is reversing. The above chart is for GBP/USD daily candles, and you can click on the above image to see the original chart size.

Wolfe waves indicator

Copied from http://www.chart.nu/wolfewave.htm website


"I was introduced to this setup back when Linda Raschke mentioned the pattern in a market call. Being the ever curious one, I found some additional references and examples in her book StreetSmarts, saying that "this particular methodology is perhaps the most unique, effective trading technique I've (Linda) ever came across! It was developed and shared by a good friend, Bill Wolfe, who for the last 10 years has made a living trading the S&P." The next jump lead to http://wolfewave.com/, an excellent source of information which was read, absorbed, and served as inspiration for use in the real world markets. Being very interested in reversal sequences, this approach appeals very much to my risk profile and trading style based on chart patterns (classic Edwards and Magee).

The key to recognizing the setup is symmetry. Ideally, waves 1-3-5 are established with very regular timing intervals between moves. The other key ingredient is that the wave 4 should revisit the price range established by waves 1-2 for the best results. Another way to describe the pattern is that it comes as a rising wedge / channel in an uptrend, or falling wedge / channel in a downtrend. Wave 5 is often a false breakout move beyond the bounds of the pattern. Unlike either bull or bear flags, the movement is in the same direction as the overall trend, with the overlapping waves giving signals that an impending reversal is taking shape. This pattern has different names, depending on the source - Larry Pesavento describes the pattern as "3 pushes to a top/bottom" and uses Fibonacci relationships to confirm the setup (waves 3 and 5 are 127% or 162% extensions of the previous pullback.) Jeff Cooper uses "Cooper 1-2-3 swing" nomenclature, and Linda Raschke likes to call this setup "3 indians". The unique quality about wolfewaves, however, is the objective target projection from waves 1 -> 4.

Despite the great explanation and examples provided on Bill Wolfe's site, I continue to get questions about how much I trust this setup. Very much so. The following are setups encountered over the years - most were called as wolfewaves right as the pattern was found, trade taken, and real money put to work to measure the risk and reward in real world cash. I hope these recent charts serve as inspiration for further study. Who needs bulls and bears when you can run with the wolfes?"

Weekly Pivot indicator

Weekly Pivot indicator



Weekly pivot indicator automatically calculates the pivot numbers for the weekly chart and plot it on any time frame. The chart above is for GBP/USD daily candles. The indicator may be useful for identifying strong resistance and support lines, or possible levels of retracement.

Fibonacci retracement indicator

Fibonacci retracement indicator



The indicator automatically plots the fibonacci levels on the chart. The image above is from a GBP/USD daily chart.