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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The Canada and Crude Go into Distribution

Posted 13:16 28 January 2009 | Comments

Here comes the chop...Both the dollar-canada and crude oil are going into a distribution cycle on their respective daily charts.

The USD/CAD has formed a triangle chart pattern and as it bounces around the market cycle has transitioned into a "two to four o'clock" market cycle.

cad 1-27-2009 7-07-23 PM.gif

This blog is called "Chartology" for a darn good reason...we're going to look at a lot of charts. The goal here is to allow you to marry price action and fundamentals in such a way that you can confirm not only the broader market psychology but also relevant data and economics. Remember there is always more than one story that is affecting the market...out job is to figure out which is baked in to the cake!

So here's the chart pattern that often accompanies the sideways, distribution market cycle:

Since the canada is a comm-doll then it's only natural we look at it's commodity sidekick, crude oil. There are a few ways to do this. The best is a direct look at the front month contract of crude:

cl daily 1-27-2009 7-09-32 PM.gif

Another option is to look at the "USO" symbol which is the ETF for light, sweet crude oil:

So what's the play amongst these longer term, "big picture" charts?

First of all, since we know that there is likely to be continued chop as the market distributes, the best place to look is on the intraday charts. So keep an eye on the 60 minute USD/CAD for a momentum play (breakout/breakdown) or the 240 minute chart which is heading lower in a downtrend. For the downtrend, look for corrections (bounces) and look for shorts within the 1.2295 to 1.2320 resistance range.