Daily Chart Art – November 23, 2009

NZDUSD: 1-Hour

PoD Chart

Good morning forex friends! Let’s start the week with my analysis on the NZDUSD pair. As you can see from its 1-hour chart above, the pair went on a downhill and broke below the 0.7315 support. Buyers started to pick it at around 0.7201. In my view, the pair could rebound all the way back to the previous support at 0.7315. Sellers could jump back in to push the price down again since this mark also happens to fall in line with the 38.2% Fibonacci retracement level that I drew.

USDCHF: Daily

PoD Chart

Next is the USDCHF pair. A nice descending triangle pattern can be seen forming in its daily chart. From what I can see, it looks like the pair is poised for another move downwards. The pair could lose another 400 pips (gauged by getting the height of the triangle) if the formation’s support gives way. On the flip side, it could move towards the 1.0340 resistance if it’s able to break the downtrend line.

EURUSD: 4-hour

PoD Chart

Moving on to the EURUSD 4-hour chart… Lately, the pair has been drawing lower highs with a descending trend line neatly connecting those tops. It has also found support around 1.4830, thus creating that nice descending triangle. The question is: Would the pair break on the upside or the downside? Although the stochastic oscillator hasn’t reached the oversold area yet, it seems ready to climb up. If the pair breaks above the top of the triangle, it could soar all the way up to the 1.5050 area and retest its yearly high. On the other hand, if it drills through the bottom of the triangle, it could tumble down to this month’s low of 1.4630.

  • ssharma

    “The pair could lose another 400 pips (gauged by getting the height of the triangle) if the formation’s …..”

    Please let me know how you can calculate the 400 pips by gauging the height of the triangle.

    Thanks

  • MonsterTrader

    Thanks for all your work!

  • Graduate

    Hi Big Pippin,

    I am new to this forum and FOREX as well. I am studying the Cowabunga system and have the following question: when you use the 5EMA and 10 EMA on the 4-hour and 15 min chart, do you have to periodize them? In other words, the 5EMA means 5 days exp moving average on a daily chart, but when you apply it to 4hour chart the period of 5 days should be converted to 4hr period and input as 30 ((24/6)*5=30) and for the 15min chart it should be input as ((24/0.25)*5=480).

    Thanks,
    Graduate

  • BigPippin

    Hi ssharma! According to some notable technicians like John J. Murphy, you can gauge the minimum price move from chart pattern breakouts by getting the height of the formation. In the above, get the difference between the high registered on October 1 (1.0454) and the triangle’s support (1.0034). The difference between the two prices is 420 pips.

  • BigPippin

    Graduate, you have to ask Pip Surfer. However, as far as I know, you don’t have to periodize them. Just input them as is. Ty!

  • ssharma

    “The pair could lose another 400 pips (gauged by getting the height of the triangle) if the formation’s …..”

    Please let me know how you can calculate the 400 pips by gauging the height of the triangle.

    Thanks

  • MonsterTrader

    Thanks for all your work!

  • Graduate

    Hi Big Pippin,

    I am new to this forum and FOREX as well. I am studying the Cowabunga system and have the following question: when you use the 5EMA and 10 EMA on the 4-hour and 15 min chart, do you have to periodize them? In other words, the 5EMA means 5 days exp moving average on a daily chart, but when you apply it to 4hour chart the period of 5 days should be converted to 4hr period and input as 30 ((24/6)*5=30) and for the 15min chart it should be input as ((24/0.25)*5=480).

    Thanks,
    Graduate

  • BigPippin

    Hi ssharma! According to some notable technicians like John J. Murphy, you can gauge the minimum price move from chart pattern breakouts by getting the height of the formation. In the above, get the difference between the high registered on October 1 (1.0454) and the triangle’s support (1.0034). The difference between the two prices is 420 pips.

  • BigPippin

    Graduate, you have to ask Pip Surfer. However, as far as I know, you don’t have to periodize them. Just input them as is. Ty!