Thursday, March 26, 2009

Apply Point and Figure Charts for Forex Day Trading

On hourly point and figure charts, yen made a double top pattern at 98.50, which is at the same level of the triple top before last week's slide. Then the double top breakout met the same resistance from 99. It would be interesting to watch whether this up thrust will challenge the key 100 level.

Euro met a double top resistance at 3633 in early US session. The slide ended with a higher low, which indicates buying interest.

On pound's candlestick chart, it's clear the lower highers indicate selling pressure.

On hourly point and figure chart, pound formed a downward channel. After met the overhead resistance from the top of channel, pound broke down from the pivot point (4598). The slide stopped right at the bottom of channel, which is also the 38.2% fib retracement level. The key support level 4392 is still intact.

After five days of top building, euro's daily range contract and today is a NR7/ID, we might have a trending day by the last trading day in March. Yen formed a NR7.


Ben 10 said...

your analysis(double top breakout P&F) confirmed my bullishness and hope you dont mind that i save all your point and figure chart to my pic document.

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