Hi Brad,
Great work...would you go long now or wait for a test of support around 0380/90 area? SSD is looking down and MACD has a bearish bias. Thank you

Hi Everyone

If you have not seen it yet, the latest Candlestick Analysis Weekly report has been posted (ahead of the new schedule) on DailyFX.com:

US Dollar Weakness Ending, Say Candlesticks

I decided to do the report early in light of Friday's moves.


Ilya

__________________
Ilya Spivak is the author of Candlesticks, Fibonacci, and Forex Trading Weekly Forecast on DailyFX.com.

Hi Ilya,

Another two excellent trades with spot-on action in both pairs. They both acted as per your recommendations, so good profit booked and now out of trade to wait for your Fibonnacci Report. Thanks once again. Cheers

Hi Ilya,
I was just now looking at the usd/chf it seems as if it find support at 1.0936 at the 61.8 extention for a continuation of the upward move. What is your take on this?

Interesting idea, Rucks. What high/low end points are you looking at for your Fibonacci trend line?

If you look at the decline from 05/08-07/15, current price action is cleanly range-bound between the 138.2% (1.0858) and 161.8% (1.1000) extension levels. The last couple of days have seen some back-to-back Hammer candlesticks, so we may be looking at a pullback to support at a pullback to support at 1.0858 from here.

Attached Images

 

__________________
Ilya Spivak is the author of Candlesticks, Fibonacci, and Forex Trading Weekly Forecast on DailyFX.com.

Thanks SKS, as always your kind words are very much appreciated. I hope you found the Fibonacci Weekly helpful. Just in case you missed it, here's a link:

US Dollar Rally to Continue Against Major Currencies


Ilya

__________________
Ilya Spivak is the author of Candlesticks, Fibonacci, and Forex Trading Weekly Forecast on DailyFX.com.

Thanks alot Ilya your input is greatly appreciated. I will be looking forward for your next post as they are both helpful and educational.

Hi Ilya,

What is your take on Gbp/Yen? It has broken the 61.8 fib retracement (from Mar low to July high). What is its next stop?

Thanks,
Steve

Being a newbie to Forex, I really found the Japanese Candlesticks fascinating and wanted to learn all I could. I figured if I was to make a profit I needed to know what was going on. So, I did a lot of research. I found some really good sites on the subject and a must read book at my local library. It was by Gregory Morris and is called Candlestick Charting Explained. It really goes into detail with each pattern.

I found a lot of sites also. One I found in particular is www.ezcandlesticks.com
It has great information if you're starting out. I don't think I have found another site that has as many of the patterns as they do. They have all kinds of odd Candlestick stuff too, like posters, t-shirts and mouse pads to help you learn the patterns. I just recently looked at them again and they have a Google Gadget now for FREE to download and it shows you a Candlestick definition a day. They have a forum and games and an encyclopedia so you can look at all of the patterns. It's just a really cool site if you ask me.

Another good site is www.candlesticker.com
They also have good pictures of the patterns. They have them separated by their trend. Once you click on them it takes you to another page and goes into great detail about each one.

My last one is www.leavittbrothers.com
They have a lot of patterns you can look at too. They also go into detail but, what I like the best is that they actually have charts that point out the pattern for you in most of the descriptions.

I'll have to agree with John about the Lit Wick site. It really is a nice site too for Candlestick definitions.
Hope these help somebody out there. Happy Trading!

I've been studying candlestick charting for a few months now to identify candlestick lines, reversal patterns and continuation patterns. When trading, I really prefer the more active style - I like to get in and out again within a couple of hours, only grabbing 10 pips or so (but with multiple lots). My theory is that it is much more likely to move 10 pips in my direction than 200, so if I use multiple lots, the end result can be the same (but quicker).

I completely understand the importance of looking at the larger timeframes, weekly and daily charts to get the big picture and then I drill down to the smaller timeframes.

For those Active style traders that use candlesticks, my question is -- when using candlesticks to identify patterns on the 60 minute and smaller charts, are they as accurate? For example, if there's a Three White Soldiers pattern on a 30 min chart, does it hold as much weight or is it as accurate vs. when it's identified on a daily chart?

Thanks!

we have gone through the "soft target" on the GBP. Could someone tell me what Ilya normally does in this instance?....ie move stop down, take profit etc
thanks

In this case we move our stop to break even and keep holding for further dollar gains


Ilya

__________________
Ilya Spivak is the author of Candlesticks, Fibonacci, and Forex Trading Weekly Forecast on DailyFX.com.

Hi Ilya,
Looking at the usd/chf it seems as if it might go lower to about 1.0933.Whats your take on that?

I would be a bit careful here. Friday's price action closed above the Fibonacci extension resistance level that we identified at 1.1000 (161.8% extension of the 05/08-07/15 down swing). Simpler put, it is the highest close of the last 10 days that the pair has been ranging. I see the trend as bullish, so if I was trading it I would not look for a counter-trend short here.


Ilya

__________________
Ilya Spivak is the author of Candlesticks, Fibonacci, and Forex Trading Weekly Forecast on DailyFX.com.

great thanks Ilya
great trade
how did you learn this method of trading?