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.

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
EUR/USD
Mixed
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
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • BoK Governor Lee says Yellen a rational pick for Fed, would be positive for markets - BBG
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.39% Silver: 0.27% Gold: 0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/NeCekjNnTU
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.16% 🇨🇭CHF: 0.13% 🇨🇦CAD: 0.09% 🇦🇺AUD: 0.04% 🇬🇧GBP: 0.03% 🇳🇿NZD: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/KLzNspAZRP
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.25%, while traders in NZD/USD are at opposite extremes with 75.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/6Y0Ouk5KIq
  • All my Google autocompletes are now Thanksgiving related. This is making for some interesting suggested searches
  • Bok Governor Lee says action will be taken if herd behavior seen in FX market - BBG $KRWUSD
  • New Zealand Prime Minister Ardern says rising home prices not a plan for growth - BBG
  • Wall Street Futures Update: Dow Jones (+0.214%) S&P 500 (+0.262%) Nasdaq 100 (+0.440%) [delayed] -BBG
  • The Euro looks poised to continue gaining ground against haven-associated currencies and may reverse higher against the British Pound in the near term. Get your #Euro market update from @DanielGMoss here:https://t.co/oRIHju7ZzK https://t.co/dp5DbFArym
  • Sri Lankan central bank standing lending rate unchanged at 5.5%, standing deposit rate unchanged at 4.5%- BBG
Three Compelling Reasons

Three Compelling Reasons

2010-04-14 21:47:00
Richard Krivo, Trading Instructor
Share:

Instructor's Response:

 
Good identification of RSI divergence and chart recognition in general...nice work.
 
At the point you mention shorting the pair, the RSI closed below 70. Based on the RSI alone, this gives a strong signal to sell the pair.  Taking into account the divergence that you mention, the RSI closing below 70, combined with the bearish engulfing candle, we have three very compelling reasons to sell the pair at the point on the chart that you mention.
 
A suggestion:  Given that this is a Daily chart of the GBPUSD, one of the more volatile pairs, a more prudent stop could be placed above the wick of the highest price indicated on this chart...see the chart below for a visual.
 
chart 4 14 10

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

DISCLOSURES