It looks like the AUDJPY may be topping out. The following 15 minute chart shows a return to a previous high with something that could end up being a head and shoulders pattern emerging.However, the 3 hour chart is showing a possible continuation and has been trending upwards for quite a while.Open up your trading platform and choose your play...Play safe!

First, I have to warn you, I'm eternally bullish on the AUDJPY. This means I'm wrong on my predictions a fair amount due to my long term viewpoint.With that said, I've noticed a chart sign that implies some possible upward movement. Take a look:It may not be easy to see, but notice how the recent tails, at 09:00, under the last few candlesticks did not project below the closing prices during a

I don't have time to snip a chart or anything, however I'd suggest taking a few moments to analyze the AUDJPY.What I see is the potential for a so-called "big W" on the 3 hour chart. You'll notice the right side of the W has a double bottom. If we do get the full "big W" we should see some dramatic upward movement over the week.Fundamentally, inflation, employment and other indicators in

Well, my posts are few and far between these days.In case anyone else is still following long here is some good information on the 3hr AUDJPY.We have a nice symmetric triangle going all the way back to November 25th.See?I'm expecting this to break (upward) and then run into a downward sloping resistance line on the 1d AUDJPY. However, we'll have to wait and see. I've been wrong (more than a few

My last post showed a profitable overnight setup based on a week long support line on the 1hr chart.Here, I've got an example of a support becoming resistance once it has been violated.Take a look at the following 15min chart:See the violation around 9:00pm last night? As an aside, this was a good point to try a well protected short. Overnight we tested a longer term support line (see my

Since I'm awake I thought I'd point out a price alert.The AUDJPY currency pair is testing a support line.A long tail break (closing on or above the support line) would still be a bullish sign.Anywhere, here's a recent 1hr chart snip.This is a good place to look for a trade. Good luck.NOTE: See the previous post... it shows the support line valid since November 1st.UPDATE: Upon waking this

Price action is a type of technical Forex trading that is based on the bare prices and charts instead of the usual indicators. Traders that employ various price action trading techniques believe that bare prices and charts can tell us everything we need and that indicators, while being helpful for calculating some statistical dependencies, create a time lag that can be critical in Forex. In fact, all indicators and any other methods are based on the data that is a part of a price action. So, price action is just a broad definition for the rather raw technical market data. The four techniques that are presented here aren’t the full set of price action trading instruments; they are just the most popular and interesting ones.

Tape Reading. The term refers to the times when the stock quotes came to the trading houses (more like the modern betting firms) in a form of a tape telegram. Traders analyzed the changes in the quotes, their speed and volume and, basing on this analysis, issued their trade orders. Modern tape reading in Forex is somewhat different — you just analyze the quote as it’s displayed in your broker’s terminal and then trade using your analysis of the data. It’s the most basic way of trading and some new traders start from it without knowing how is it called. Tape reading is mostly suitable for scalping and can’t be used for the long-term entries.

Japanese Candlestick Patterns. Many different patterns, formed by the Japanese candles, are recognized by the Forex traders. Such patterns are usually quite small (they consist of 1 to 4 candles) and can be spotted on all timeframes. Japanese candlestick patterns aren’t too reliable but the abundance of symbols compensates the low winning rate. This type of trading is a part of price action but it requires some basic chart analysis.

Chart Patterns. Patterns formed by the price fluctuations of the chart are numerous — triangles, wedges, double-tops, double-bottoms, head-and-shoulders and many others are all part of this trading technique. Opposite to the Japanese candlestick patterns these patterns are usually formed by many chart bars and often serve only for the long-term market evaluation. Chart patterns sometimes have a strong fundamental basement and are thus valued by the professional traders and the Forex market tends to «follow» them simply due to their popularity.

Point-and-Figure Charts. This type is a bit more difficult than everything else in the price action domain. It’s also arguable that point-and-figure can be considered a price action technique at all. P&F charts are built based on the price changes, independently on time. The columns of X’s are formed when the price is rising, while the columns of O’s are formed during falling trends. The columns of X’s and O’s follow each after another. A price should pass a certain amount to form an O or X or reverse in an opposite direction for a significantly higher amount to start forming a new column. Trends can be easily read in such charts and many Forex traders use the strategy to buy and sell exactly at the new column’s start to catch the new trend.

Not all traders can use price action techniques successfully, the same as not everyone can trade with the indicators profitably. Price action can be used alone but it also can be interesting for other methods’ confirmation. With price action techniques you can always scale in and out and flexibly change your strategies as well.

What the heck, I may as well jump out on a limb and let you know what I'm seeing with the AUDJPY.Basically, if you look at the chart, we've had a good support line since the beginning of November.Now, if I've got the right chart uploaded, take a look below:Personally, I'd suggest taking a long position when the price approaches the support line. You can set a nearby stop and protect yourself

The AUDJPY has done a whole lot of nothing for the last few days.Can you blame it? It must be tired after the recent climb.More seriously, with the RBA considering whether to raise rates another 25 or perhaps even 50 basis points, I don't expect any type of calamitous drop.I think we might see a drop down to 83.00 again but if it does stop in that region I'd consider the range between there and

I obviously have no guarantees but, according to my own proprietary reversal indicator, this is a potential reversal point.Again, do your own homework, but this is the "signal" I'll be posting to my alerts blog...UPDATE: It's about 9:49pm and the AUDJPY 1hr chart is showing a potential twin tail.UPDATE: It's 10:03pm and here's the 1hr chart right now...And here's the chart from my last post

The AUDJPY has been on an upward trajectory for a while now.There is no telling, at least not in advance, whether we'll see more massive upward movement due to hawkish statements from the RBA or not.However, here is a 3hr chart showing recent movements:Obviously, clear support and resistance helps identify some lower risk entry points.

My last post focused on a short term channel.This time I'm looking at a longer term trend -- though still on the 1hr AUDJPY chart. This one looks like it might be a bull flag.It's always hard to tell. However, with future interest rate hikes expected, it's likely we'll continue our upward movement if signs of an Australian recovery remain strong.Here's the chart:Play safe.UPDATE: It's 7:00am

There's a channel on the AUDJPY 1hr chart.For as long as the channel decides to last we have an opportunity at either the top or bottom levels.Notice it going back and forth?This is perfect for my custom trading robot...Unfortunately, predictability never lasts.Well, that was nice. It's about an hour and half later... see the bounce? Click the image to get a larger version...Are we going to

Here's a snip showing the accumulation distribution on the AUDJPY since the 2nd of October.The recent test of the support line happened today near 2:30pm. Obviously, the fact that the RBA appears to be ready to continue a series of interest rate hikes appears to be driving this.I'm looking for this line to break.UPDATE: It's just after 6:30pm and I figured it might be nice to get a larger look

I'm sorry you feel that way. Perhaps after looking at the following chart snip you'll think that you may have missed the boat.See how the daily chart shows solid support since March? March! Hello, it's a little too late to be skeptical. The question you have to ask yourself is why has the AUDJPY been performing so well and how long will it continue to do so.On another note, I'm going to start

I've spent most of today scalping the AUDJPY (on the long side).Jumping up to my 3hr and 4hr charts, as I have two platforms running, I see an upside down head and shoulders.You may want to take a look at this and see what you think.

I've become a little frustrated with most of news sources out there. If you've been an active forex trader for any length of time you'll notice that talking heads are always trying to tell you why something happened.That's really nice, and might possibly help you learn about various financial interactions, but it's absolutely useless from a trading point of view. If you are trading you need to

Support and resistance is the one of the most popular and widely used methods of technical analysis in Forex. It’s simple, easy to understand and doesn’t even require any additional analytical tools except the bare chart of the currency pair. Support and resistance levels form when the price action creates the distinct peaks and plateaus on the chart. Support level acts as a barrier for the rate that falls, while the resistance is the level that prevents rate from growing farther. Buying when the resistance is broken and selling when the support level is broken is an easy Forex technique that made thousands of traders rich. If you plan to trade using support and resistance, don’t forget these important facts:

1. When the support level is broken it becomes a resistance level, the vice versa is also correct.
2. Breaking the support and resistance levels isn’t an exact math. False breakouts are possible.
3. Real breakouts are usually marked with a bar closed below/above the support/resistance level.
4. Check your charts on the different (larger) timeframes. Some important support and resistance levels can only be seen on the long-term charts.
5. If the rate bounces off the support or resistance that level becomes stronger. The stronger support and resistance level is the more profit can be gained when it’s broken.

Concluding all that was said above I should also warn you that using support and resistance in your daily trading will become profitable over the time as this method requires a lot of real experience and becomes more powerful with each trading success or failure.

The technical indicators of the Forex market don’t take information from the air; they are all based on some of the market’s parameters and the appropriate calculation methods. Each indicator is calculated according to its own rules and there is no need to describe them all. In this article I’ll try to describe only the actual Forex market parameters that can fully describe the technical side of the Forex trading.

1. Trend — a direction of the price movement. Forex market can be in some kind of trend or go sideways. The trend itself can be measured by its direction, starting/ending point, ranges and the inner volatility.
2. Volatility — a statistical measure of the number of the price changes over a certain period of time.
3. Momentum — a measure of price movement strength in a term of pips per tick.
4. Cyclicality — it’s hard to be measured, but it still exists on the financial markets (and on Forex too) and describes the cyclical nature of some price movement.
5. Volume — the number of the transactions (price changes for Forex) in a given amount of time.
6. Support and resistance levels — they can be hard to spot, but Forex market generally bounces off of them or breaks them with a significant price action.
7. Traders’ expectations — they can’t be seen from charts, but they are the part of the technical picture of the market. Stop and limit orders are the important parameters of the market that should be taken seriously.
   

Some technical indicators use only one or two of these parameters; very few of the standard MetaTrader 4 indicators use more than two technical parameters. And I don’t know any indicators that are based on cyclicality or trader’s positions.

Technical analysis is the powerful tool to forecast the price action in Forex market. It’s more popular than fundamental analysis in currency trading and is used both by beginning traders and experienced professionals equally. But is it that cool and omnipotent? There some situation when good old technical analysis can ruin your trading.

News of high importance. When very important news are released with the unexpected outcome that greatly exceeds any forecasts, even the most certain technical patterns get ruined. It’s a real trading suicide to rely on technical analysis in the chaos that rules after such releases. Disaster/terrorism news also tend to affect Forex market in a similar way.

Holidays market. Trading during big holidays (such as New Year and Christmas) isn’t advisable at all. Technical analysis fails there because the volume of trading is extremely low and the market becomes highly unbalanced with large spike movements possible in each direction. Big speculators can forge the market to their own liking during such periods.

Bubble rallies and bursts. When some market gets a hype, it’s hardly obeying common rules of technical analysis. In Forex when some currency goes up like a bubble (recent carry trade hype is a good example) another currency from the pair goes down at the same extent. Trading on sharp rallies can be very profitable, but don’t expect your support and resistance levels to work there.

Remember the situations when playing by technical analysis is dangerous and you’ll be able to apply it only in a friendly environment, where your strategy won’t be hurt by any «force majeure». In Forex technical analysis can be your best friend, so don’t let some circumstances turn it in your worst enemy.