Daily Chart Art – April 16, 2012

USD/CHF: Daily

USD/CHF Daily Chart

Let’s start the week with a potential ascending triangle action on USD/CHF. The pair is making higher lows on the daily chart, and is fast approaching the support-turned-resistance area just above .9300. Will the level hold as resistance, or will the scrilla bulls dominate price action? Stochastic is currently on the bears’ side, but watch for any breaks to the upside!

AUD/USD: 4-hour

AUD/USD 4-hour Chart

Remember the falling wedge that I pointed out last week? Well, it looks like it finally broke to the upside! Thing is, it encountered resistance around the 1.0450 area and is now falling back to a potential support at the broken trend line. Will 1.0300 provide enough support for the bulls, or will the pair drop back to test the wedge support? Stochastic is suggesting that it’s still a coin toss, so make sure you keep an eye out for this setup!

EUR/AUD: 4-hour

EURAUD 4-hour Chart

Last up for today is a simple divergence play on EUR/AUD. On the 4-hour chart is a potential bullish divergence with price making lower lows and Stochastic sporting higher lows. Not only that, Stochastic seems to have crossed in the oversold region and is ready to get back up just as price is consolidating at 1.2600, a major psychological handle. A stop below the previous low might be a good idea if you’re thinking of buying this pair.

Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.

Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.

  • Sunshine

     Hello Dear,
    I am your BIG fun from last one week. I am starting to see and analyzing your analysis from last week.

    I need your some tips and advices. I have completed babpips  school tow month ago. I have read also some goods books. I have read some posts of many blog and forums with babypips forum also.

    I am reading also Pipcrawler’s bolg with your blog.

    Overall, I am learning trading almost 10 months. But I can not make profit yet. Is it amazing ? I research chart and read trading resource at least 10-14  hours in a day. I am now disappointed almost.

    Will you help me ?

    • bigpippin

      Hey there, Sunshine!

      Thanks for reading my blog! How can I help you?

      • Sunshine

        Hello Dear,
        I want to be a good chartist like you ! If you give me some guideline, I will follow them blindly to be alike you.

        • bigpippin

          You can probably start by reading the Elementary section of the School of Pipsology. Here’s a page.

          http://www.babypips.com/school

          Lemme know if you have other questions!

          • Sunshine

            Dear Big Pippin,
            I think, You didn’t read my first comment fully.

            I have read full babypips  school and also  many good books. My reading speed not bad, Because I am so effective reader. However, I want advices of advance level.

            Such as,
            1. How can I analyze a chart well ?
            2. How can I be a profitable trader or what should I need to be a profitable trader ? etc.

          • bigpippin

            Hey Sunshine!
            Have you tried practicing all that you have learned on a demo trading account?

            Maybe it’s time to test your skills! Who knows, maybe you’ll learn something that isn’t found in forex books.

          • Sunshine

            Dear Big Pippin,
            One of my biggest problem is that If I put all together I can not find out any entry and exit option. Such as If I find an entry by using support,resistance,trendline and stochastic, but fibonacci not confirm my entry. Again, If I find an entry by trendline and candlestick pattern support and resistance not confirm it. What should I do ? confirm an entry only 2 or 3 tools ?

          • bigpippin

             Yes, it’s usually a good idea to just use a few indicators per trade. Indicators should only help you take a trade, not confuse you. You can try using one indicator at a time and use what works for you.

          • Sunshine

             Thank you very much for your valuable advices. I will try.