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
Stick a fork in Alan Greenspan because he's done! The FOMC meeting has passed over so let's review the charts to see the market's reaction. Keep in mind that there is still the ECB meeting on Thursday and the US nonfarm payrolls report on Friday. There could be some huge moves still to come especially if the ECB provides any dovish comments and/or there is a higher than expected employment growth reported for the US.Be careful. Don't let the market take all your money.
EUR/USD
Daily Chart
Look at that fall and then look how it found support on the top Fibinnel of its ascending channel. It seems the pair wants to test its purple 200 SMA again. Because it bounced off the top Fibinnel, I'm looking for the pair to test the top of its channel again. You could buy the pair if it closes above its 200 SMA. Take profit at the top of the channel and place your stop below the 50% Fib line.
4 Hour Chart
The pair is facing resistance right now at its 38% Fib line but has found support at its 100 SMA. I'm not sure where this pair is headed looking at this chart. I'm leaning more towards further downside since the pair failed to make a higher high. If you want to be aggressive, you can short now. Your stop would be placed above its most recent high highlighted with a red circle. Your target would be its purple 200 SMA highlighted in blue.
I feel more confident that this pair will fall some more looking at this 4-hr chart. The pair retraced all the way up to its 50% Fib line then fell. Right now it's sandwiched between its pink 50 EMA and blue 100 SMA. It's undecided right now. I still like my short trade from the previous chart. Now that I see this chart, a safer place to put your stop would be above the 50% Fib line. Your target would still be the purple 200 SMA.
I threw this chart up just to show you how low this pair could go if it does continue to fall. Check out the huge support at the purple 200 SMA and 50% Fib level. My guess is if it can break below that, it's headed for the big money at the 100% Fib level.
GBP/USD
Daily Chart
Looks like it also wants to test its purple 200 SMA again. Here's an aggressive trade. Short the pair when it hits its 200 SMA. Place your stop above the top of the channel. Target the bottom of the channel. Make sure you trail your stop to lock in profits.
4 Hour Chart
Here's my old 4-hr chart from my weekend review but I've drawn in my awesome green trend lines. Notice how the trend lines are forming a triangle. Because the recent price action failed to make a higher high (which was at the 61.8% Fib line), I feel there's further downside with this pair but it could also consolidate within the triangle for awhile. I will sell this pair if it closes below the lower green trend line. My target will be its purple 200 SMA or you could move to breakeven and go for more if you're greedy. My stop will be above its blue 100 SMA.
USD/JPY
Daily Chart
Tsk tsk. Look at this. The pair failed to breach its 24% Fib line before falling down. This doesn't look good but I think it's too early to say that it won't move higher anymore. For now, I can see it trading sideways between the 24% and 38% Fib lines until it decides which direction it wants to go.
4 Hour Chart
At least this looks good. Check out how it bounced off the top of its channel. Looks like it found support around the 24% Fib line and top boundary of the channel. I don't see any good trade ideas here though. I'd like to wait for it to close above its swing high before jumping on the bulls' bandwagon.
