Cleopiptra

The 240-minute NZD/USD broke higher through resistance at 0.7138 – the price at which a breakout buy was triggered on the Triangle pattern’s downtrend line…

The intraday EUR/USD has broken the 1.3300 level, making a new 11-month low at 1.3259. (The last time prices traded at these levels: May 1, 2009.) The downtrend has formed a Falling Wedge pattern, with prices continuing to press down and make not only lower lows…

The EUR/JPY has formed a Triangle pattern on the 60-minute chart, with prices squeezed into a narrow trading range between 125.55 and 125.05. The current market support above the 125.00 “big figure” level…

There are more reasons I have to want to take the 60-minute swing that I have been waiting for this morning, but the main reason I may not get it is PROXIMITY.

A like transparency. I want you to be able to see why and how I am taking an entry. Now this is from an earlier swing from this morning on the intraday EUR/USD but the thinking and set up would be the same for any swing short entry.

I’ve got two short videos to share here with you…I thought it would be great weekend “in your robe” seminar. I like to break down the ideas and analysis behind my trades whenever I can so you can see how and why I choose to take a set up.

Remember regardless of whether you are automating your chart pattern identification, using manual lines and levels, using the Wave or some other tool…KNOWING how to trade a pattern in relation to the market direction is vital to success in using this time tested, price analysis.

I was watching the intraday breakdown on the one hour USD/JPY and noticed two things. First I really didn’t have a set up to capitalize on the weakness…on the one hour chart. Second, and this is what turned the light bulb on, price reached the 50% Fibonacci Level support and was testing an intraday double bottom.

The GBP/USD has been consolidating across the 15 and 30 minute charts as the longer term 240 minute and daily charts are in strong mark down cycles. The longer term charts while tempting because of their strong trends are going to take some time to correct enough for me to get interesting in a swing trade short.

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 typ