Welcome to this trading blog. The purpose of this blog will be to highlight simple trading setups and concepts which will hopefully help to increase account balance, minimise stress (due to trading) and make us all better traders. I only look at higher timeframes (1 HOUR AND ABOVE) and as such am able to walk away from my computer screen i.e 'set-n-forget'. I am also a believer in the KISS (Keep It Stupidly Simple) principle and try to apply this to my trading using simple concepts e.g. divergence, minimal number of indicators, confluence of factors, and most importantly PRICE ACTION.
Hope you all enjoy it.

21 August 2010

EURUSD

Hey everyone,

The EURUSD is looking pretty good for a short on this daily chart. Here is why:
1. Head & Shoulders pattern with neckline break (some may call the pattern a Bump and Run Reversal either way the implication is still very bearish)
2. 8,21 EMA cross downwards
3. Break of key support @ around 1.2730 as well as lower channel boundary
4. Price below21, 50, 200-EMAs
5. ADX @ 35
6. Price has already reached 50%-61.8% Fib zone (ambush zone) of previous downward swing
7. The weekly still in strong downtrend (8,21 EMA downward cross with ADX @ 34)

Will be looking to short on a pullback

Cheers!!!!!
Posted by Ayo Odunuga at 21:18

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