About Chartology

With "Chartology", you'll be sitting in the front row as I discuss price action analysis, market cycles, chart pattern setups, optimal trading time and volatility analysis, as well as the psychology behind price action. Put these tools together and you're looking at how to begin mastering the charts. In fact, be sure to watch the "Your Forex Questions Answered" video here.

Every day, occasionally more often, I'll additionally discuss order entry, U.S. Dollar Index, crude oil, gold, and the Dow. Forex trading allows and requires a viewpoint that goes beyond simply analyzing the pairs. I'll explain in detail how I scan for trades — I call it "triage" — how I set up trades proactively, and how I manage entries and risk. Trading isn't all that diffcult but the process of finding your tools and approach and trusting them is. So here's your front row in my trading office, thanks for reading, let's get going!

Who is Queen Cleopiptra?

Raghee Horner is a private trader, founder of EZ2Trade Software, entrepreneur, and author. She has been trading forex, as well as futures and stocks for almost twenty years. She is a regular contributor at a number of sites including FXStreet, Trading Markets, Autochartist, eSignal and a featured speaker at the Forex and Traders Expos. Her commentary and analysis is seen daily by thousands of traders at her personal blog ragheehorner.com. She has written articles for Technical Analysis of Stocks and Commodities, Currency Trader, Your Trading Edge, and Traders Journal magazine.

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EUR/USD Ascending Triangle Set Up Options

Posted 09:26 22 February 2010 | Comments

The 30 minute EUR/USD has formed an Ascending Triangle. This pattern is also referred to as an asymmetrical pattern since one level is horizontal -- in this case the resistance. The horizontal level opens up some potential alternatives to the common momentum set up that is most commonly associated with triangle patterns of any type. But knowing which set up is appropriate is not based on the pattern itself but instead what market cycle is formed within.

The lookback on the 30 minute time frame is one to two weeks. Here's the one week lookback of the current chart and pattern.

Notice that the angle of my Wave indicator is flat but most recently has flipped up slightly. This opens up the door for exhaustion at the ceiling rather than a breakout with momentum higher.

What are some other factors? Consider that the U.S. Dollar is losing ground below 80.50 as equities begin trading for the day. This could help the EUR/USD push higher through the 1.3640 resistance. However, remember that with no data releases today, but a press conference from Pres. Obama, there could be some flight to quality plays setting up or at very least traders waiting to see what the overall market reaction will be. Traders are already in "wait and see" mode with Bernanke's Wednesday and Thursday testimony approaching.

The triangle fade has the 1.3650 level also involved. One plan could be to watch for buying support if prices can rally through the 1.3650 level as this should initially be resistance. Give the market at least five pips of wiggle to sort of the opinion at this key psychological level.

If the U.S. Dollar does rally today and the exhaustion level is not hit to trigger a short sell, look for the uptrend line support and the 38.2% Fibonacci Retracement level to trigger a potential pattern breakdown.