News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqi8ZEe https://t.co/Gps2Xp32h9
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/hftCEho1lM
  • Gold price action is primed for volatility next week with the Fed decision on deck. How real yields and the US Dollar react to fresh guidance from Fed officials will be key for gold outlook. Get your weekly gold forecast from @RichDvorakFX here: https://t.co/MzaIl7tPmZ
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
New Candlestick Analysis Results in Breakout Entry

New Candlestick Analysis Results in Breakout Entry

Walker England, Trading Instructor,

The USDJPY has continued its descent from its current 2012 highs residing at 84.17 created on March 15th. Price has moved as much as 489 pips lower, to 80.28 yesterday’s low. As momentum builds to the down side, traders can look to price action clues to help define market direction and entry points. One unique way to trade price action is through candlestick analysis.

Looking closer at yesterday’s closing candle, we have completed a traditional candle pattern known as the Falling Three Methods. This pattern is developed by viewing five candlesticks and suggests a continuation of our trend with the creation of a fresh lower low. Depicted below, we can see the pattern completed on our recent drop lower after three days of consolidation. If this pattern signals the reinstitution of our bearish bias, traders will look to move in on their charts and look to find new selling opportunities on the USDJPY.

New_Candlestick_Analysis_Results_in_Breakout_Entry_body_Picture_2.png, New Candlestick Analysis Results in Breakout Entry

Zooming the graph in to our current days price action, we can also use candle analysis to see the USDJPY developing an inside bar. An Inside bar is created when the current days price does not exceed either the previous day’s high or low.Breakout traders look for this charting setup to apply entry orders above the previous day’s high and lows. Currently these levels stand ata daily high of .8099 and a low of .8028 from Mondays trading.

ATR can again be used to determine our profit targets. A suggested value is 20% of the daily ATR. Currently daily ATR resides at 85 pips. 20% of this value would suggest a minimum target of 17 pips on the USDJPY.

New_Candlestick_Analysis_Results_in_Breakout_Entry_body_Picture_1.png, New Candlestick Analysis Results in Breakout Entry

My preference is to sell a breakoutunder support in the direction of our daily trend. Limits should look for a minimum 17 pips profit, with stops set above new resistance keeping a 1:1 Risk / Reward ratio.

Alternative scenarios include prices remaining “inside” prior to a breakout.

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com . Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com .

DailyFX providesforex newson the economic reports and political events that influence the currency market. Learncurrency tradingwith a free practice account and charts from FXCM.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES