I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
EUR/USD
Daily Chart
The pair tested the top of the blue ascending channel today but failed to close above it. If the pair is able to close below its 50% Fib line, look for it to fall and touch the top dotted Fibinnel line.
4 Hour Chart
Let's zoom in a little using the dealer (4-hr) chart. The pair tested the top its channel but failed to break out and back down it fell hitting a nice support of the pink 50 EMA. For now, the pair is trading between the channel top and the 50 EMA. If it can close below its 50 EMA, look for it fall to the top Fibinnel line and possibly to the middle Fibinnel and blue 100 SMA where there's strong support.
1 Hour Chart
Here's that wicked 1-hr chart again from my weekend analysis. Let's enlarge the most recent part of the chart….
Check out how those Fib lines act as support and resistance levels! After lots of fighting, the pair managed to fall below all three moving averages only to rise back up and hit its head on the pink 50 EMA. Right now, this pair doesn't know what it wants to do. If it fails to close above its 50 EMA, I'm looking for the pair to fall further and test the bottom of this sideway channel around the 1.2000 area.
GBP/USD
Daily Chart
Is this is a double top forming? The pair has tested the 50% Fib line twice and failed to break above it. Keep on eye on this pair. Right now it's trading between its 50% Fib line and its blue 100 SMA. If it rises, look for it to touch its purple 200 SMA and 61.8% Fib line – a very significant level. Traders will be watching this to see if the pair can break above its 200 SMA.
I've left my old Fibonacci retracement levels on this 4-hr chart and notice how the pair fell back down below it's old swing high. The purple 50 EMA is acting as solid support right now, as well as the 23.6% Fib line. This pair is going to have a tough time falling. Look at all the support “hurdles” it will have to pass through: pink 50 EMA, 23.6% Fib line, purple 200 SMA, blue 100 SMA, and that's just to get to the 50% Fib line! My bias: I think this pair is going to go up. Or not. =)
Looking at this 1-hr chart, I have no clue where this pair is going. It's basically trading in between its moving averages which means it's pretty much directionless. UK is releasing CPI numbers at 4:30 am EST so we will probably find the answer then.
USD/JPY
Daily Chart
Here's another great example of the power of Fibonacci. Look how this pair found support at its 61.8% Fib line. It wanted to rise again but got smacked upside its head by its blue 100 SMA. If this pair can close back above its 38.2% Fib line, I'm clicking my buy button.
Here's another look at the daily chart using Fibonacci extension levels. The pair seems to have found support at its 76.4% Fib line. If the pair fails to break above its blue 100 SMA, I believe it fall back down and test its purple 200 SMA.
Here's a good 4-hr chart showing the pair breaking out it sideways trading range. Notice what used to be its resistance level is now acting as support. If the pair can't break below its pink 50 EMA and its new support line, I'm looking for it to rise back up to its blue 100 SMA.
Here's a chart that further that idea. Looking at this 1-hr chart, notice all the support levels this pair has. All three moving averages plus my red trend line. If the pair does fall and close below all four of these support levels, look for it to test its low of 113.55 again. But right now, I think this pair will go up. But so II look like a genius, I will say that it could also go down.
