Price behaviour using EWT A case study on Yen - top 5 forex trading signals

Price behaviour using EWT A case study on Yen ~ top 5 forex trading signals

I have still not yet found any chart theory or technical methodology that can can be used as a market predictive tool like the elliot wave theory. 

Elliot waves theorys ability to distinguish distinctly between a trend and correction is itself a tool which, if well used, builds confidence in a trader.

On 3rd June, I posted an analysis on Yen titled What the charts are saying about Yen. 

Using elliot wave theory, I was able to predict in advance a turning point for major Yen pairs. Check how price respond to the forecast and their position afterward.

As an elliot wave theory trader, it is important to understand that nothing is concrete until price validates it. Elliot waves theory discusses how price behaves when trending and correcting. These are also known as Patterns.

Patterns help us to understand and predict what next price could do. When these patterns are put into larger structure, there is in a traders hands, very powerful tools.

After more price actions, I posted an update on the analysis above which I titled Yen is expected to strengthen across board . In this analysis, I singled out UsdJpy and CadJpy which I shorted. UsdJpy was shorted at 124.05 while CadJpy at 99.7. The two pairs dipped especially CadJpy.

CadJpy hit my final target while UsdJpy didnt. I watched 25% of the my UsdJpy opened position hit at break even. CadJpy ran to my target in an explosive manner.

One lesson I want us to learn from this post is how to read price behaviour using elliot wave theory. The chart below shows how UsdJpy dipped and the rally that followed.

 

 

There are two things that support that the bearish move from 125.85 was a mere correction.

1. The dip from 125.85 was a deep (double) zigzag corrective pattern. The leg W was a zigzag, X was a flat and Y was a zigzag.

2. Price advanced from Y in a typical 5-wave impulsive move. This signaled a possible first wave of the bullish resurgence.

Price is expected to dip to probably around 122, and if bounce from there should continue moving up.

I will wait and see what price is saying as I try to unlock an inherent tradable pattern.

You can also watch and what better tool to use if not elliot wave analysis?

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What the Charts are saying about Yen - forex target trading reviews

What the Charts are saying about Yen ~ forex target trading reviews

The Yen is at an interesting level now and so are currency pairs and other markets related to it. On a long note, its been dipping since 2011, now at 2007 low.

 Markets go up and down, in spiral form. When the price of a particular instrument goes up, its a normal thing to think of a dip. 

 

The question now is Where? and When?. 

Let me start this analysis from Nikkei 225 index which has a very strong negative correlation with the yen. 

 

Typically when Yen falls Nikkei rises and without any surprises, Nikkei has soared from 2007/08 to a 20 years high region. A fall is expected soon.

 

The charts below show the elliot wave count of Nikkei on the Monthly and Weekly time frames and are looking very strong on the upside. 

 

100% projection of its 5th wave from the 4th wave falls at 2165 and its neighborhood. 

 

The long term rally could end at this resistance level.

 Nikkei is expected to continue the rally to complete the last leg of the sub-wave of the long term bullish move.

 

 

 

The dip in Yen and rally in Nikkei are in very clear impulsive moves and a correction is expected targeting at least the region of the 4th wave of these moves.

Yen currency pairs like CadJpy, GbpJpy, AudJpy, NzdJpy and UsdJpy have been on a long term bullish impulsive move.

The UsdJpy is expected to follow this same pattern as shown in the chart below which also shows the possibe reversal zone by fibonacci extension tools.

AudJpy is illustrated in the chart below to complete the last leg of the long term impusive subwave. The possible region of reversal is indicated.

GbpJpy analytical chart is shown below.

And finally CadJpy

 

 

Updates will come as more price data are included to ascertain this analysis.

I will post updates.

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Audnzd Update - www forex trading signals info

Audnzd Update ~ www forex trading signals info

On 10th June, we did an analysis titled Audnzd preparing for a new bullish move. We were willing to take a buy trade at 1.0815 with final target at 1.127. 

We did and price advanced very fast. 

 

 

In the last analysis, we used the chart above which showed a systematic impulsive dip that started toward the end of 2010 and ended in march around 1.0 price level.

 

Price advanced immediately after the completion of the fifth wave  in what was expected to be the first impulsive move of a major correction. 

This move was expected to end at 1.2770 ( the present price level).

 

The recent bullish move is a typical motive wave and a pull back is expected as price should advance to 1.2 region.

The chart below shows the first impulsive move of the correction.

 

 

 

1.300 ( a strong resistance) and 1.1475 ( 100% projection of wave 1-3 from 4) are good levels of reversal. 

Price is not expected to break above 1.1475 before the intraday bearish movement starts.

 

From the intraday chart below, well see that price could still move a bit upside, probably above 1.300 before turning to the south. 1.1475 should be held above. 

 

 

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Yen Is Expected To Strenghten Across Board - forex trading reviews blogs

Yen Is Expected To Strenghten Across Board ~ forex trading reviews blogs

On 3rd June we had an analytical report titled What the Charts are saying about Yen. We saw how Yen has dipped for many years, from 2011 and making a 4 year low.

We made comparisons with other Yen pairs and forecast an imminent reversal in the event of things, but not until further movement up.

We forecast levels of reversal for UsdJpy, CadJpy, GbpJpy, AudJpy. Among all these pairs, we chose to look closely at UsdJpy and CadJpy

#UsdJpy

Price broke above the intraday triangle (intra day wave 4) to move in a clear 5-wave impulse to the upside. 

The intraday wave structure is labelled below.

 

 

The wave intraday 5-wave perfectly fulfill all elliot wave rules and guidelines for an impulsive wave.

As expected, price crashed below the 4th wave and then retraced to 124 which is a good intra day resistance. 

Price could crash further to 119 ( the low of the longer term 4th wave).

 

We took our sell order at 124 last week with stop loss slightly above 126 and our first ultimate target at 119. 

 

We had the courage to take this trade because we percieved the Yen might start strenghtening across board and with a deeper bearish corrective bias on Usd Index. 

 

#CadYen

 

After the completion of the triangle 4th wave, we took the ride up and exited at 101 for  a profit of 170pips.

 

 Price forming a rejection sign at a crucial resistance level. It might start falling from there as expected

 

 

 

Updates will come later.

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Perfect Forecast of JP Morgan The Power of Alternative - forex trend trading signals

Perfect Forecast of JP Morgan The Power of Alternative ~ forex trend trading signals

On 8th June, I posted an analysis here titled JP Porgan as caught on elliot wave on how I expected JP Morgan stock price to move in time to come.

I had two scenerios. While I favoured the first, I kept an eye on the second. i wrote about the favoured analysis below.

Prices are tending high in a non-overlapping impulsive trend. The recent rally which I labeled as the third wave of the impulsive move is ending in an expanding diagonal formation.

 

 In expanding diagonal, wave 5 is greater than wave 3 which is greater that wave 1; wave 4 is greater than wave 2 and the connecting trendlines, upper and lower, show that prices should continue the rally to $70 where a minor dip to $65 region  is very likely before a further rally to probably $72.

 

What happened afterward?. Price rallied to $70, dipped to form the 4th wave in a zigzag correction at $65 and now advancing toward $72. We will see price reaction at $72.

 

 

 

There could be a major slump in the price of Jp Morgan soon. We can watch and analyse with the help of elliot wave theory.

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Nikkei 225 index at 15 years high What for Yen - forex trading apprentice review

Nikkei 225 index at 15 years high What for Yen ~ forex trading apprentice review

Japanese stock index, Nikkei 225, nearing 15 years high. Massive impulsive move about to complete probably at 20600-50 level. Massive correction is expected to the south. This could spell something for the YEN

Posted by Sanmi Adeagbo on Sunday, May 24, 2015

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EurAud Rally After The Diagonal - maverick forex trading reviews

EurAud Rally After The Diagonal ~ maverick forex trading reviews

 

 

 

The charts above were used to analyse Euraud on 2nd June, titled Euraud at Critical Wave Zones. 

 

We saw from the weekly chart that there was a divided thought on the decision to take a bullish conviction.  

 

The correction was projected to complete at 1.3250 ( a good fibonacci and psychology level) but the formation of the ending diagonal posed an early completion and price is expected to rally further.

The intra day resisting region at 1.4350-4450 quickly came to mind. 

We thought that a bounce from this region could invalidate the diagonal (since price will still be within its territory).

As price broke above this resisting region, the bullish move was activated.

 

 With the strength of Euro across major currency pairs, Euraud might rise higher to break above 1.5341, 1.5829 and soar high.

 

 

 

Price will validate or invalidate this.

 

  You can get updates here

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