Continuation of last week article shown on the link below

http://www.dukascopy.com/fxcomm/fx-article-contest/?Live-Forex-Trade-Set-Up&action=read&id=1449#read-article

The trading strategy that I base my trading analysis on is Pure Price Action using Support, Resistance, Trendline, Upper and Lower Channel, Candle continuation and reversal patterns, Trend directions and important news events as a major tools to look out for possible trend directions, entry and exit points. The Support, Resistance, Trendline, Upper and Lower Channel are drawn from Monthly time frame to one hour (H1) time frames. The four hours (H4) and one hour (H1) time frames are used for trigger as price continue to react on the drawn line producing pullbacks to retest the Support, Resistance, Trendline, Upper and Lower Channel which gives fresh opportunity to add more trades or to open a fresh positions.

When you look at the above pairs you will observed that they share common Currency called USD. In some pair USD formed the Base Currency that is when USD is found on the left like USDCHF, USDJPY and USDCAD. While pairs like EURUSD, AUDUSD and GBPUSD it forms the Counter Currency. Therefore, since the pairs share a common currency (USD) it will be very important to start the live trading analysis looking at the trend direction of USD Index to aid in determining the trend directions of the above mentioned pairs.

  • USD INDEX WEEKLY CHART

Last week I posted the set up on USD Index showing Bearish Outside Bar. Looking at the Weekly chart below you will observe that the bearish trend is so pronounce. The Candle that closed July 19, 2013 did not show a reversal pattern. This implies that the bearish trend will continue till Week ending July 26, 2013. As the price continues to fall wait for price reaction at the next Support and Trendline (81.00) shown at the USD Index Chart below.Zoom to Daily time frame to see the Price Action.

The image below shows the price action set up based on Support/Resistance, Upper /Lower Channels and Bearish Outside Bar Candle reversal pattern. for Dollar index Weekly chart

http://screencast.com/t/RiGBdIsHXke

  • USD INDEX DAILY CHART

When you zoom to Daily Time Frame draw a Trendline. The Trendline should be monitored as Daily Candle open and close. If price did not break -out from the Trendline as you can see on the Daily Chart below that means that the Bearish trend correspond with the Bearish Outside Bar set up originated from Weekly time frame then hold on to your position even if it closed with an opposite Candle (Bull). It is always advised to wait for candle to close in any time frame before taking any trade decision. On the other hand if price breakout out from the trendline with a good Candle Reversal Pattern before you can even think of change of trend. As far as the trendline is not broken wait for price reactions at the next support for a reversal candle pattern or a continuation candle pattern. As the pattern looks on Daily time frame the trend is still bearish.

The image below shows the price action set up based on Support/Resistance, and Trendline.

http://screencast.com/t/V0iUwKiSJ

  • EURUSD WEEKLY CHART

This the continuation of the post I made last Week on EURUSD as the trend did not changed. Below link shows the post for last Week in case you are unable go through it last Week.The Weekly chart is still bullish as last Week Candle did not show a reversal pattern and it is also not close to the next resistance and trendline. Now wait for price reaction at the resistance and trendline for possible Candle continuation and reversal patterns before you can take any trade decision.The image below shows the price action set up based on Support/Resistance, and Trendline and the candle pattern called Bullish outside Bar.

http://screencast.com/t/5IAtvNhI

  • EURUSD DAILY CHART

When set up at the weekly time frame knowing the direction of the trend then zoom to Daily Time Frame to draw a trend waiting for price to break out from the trendine before you think of placing a sell trade. But when you look at the Daily chart below you will observe that the trendline have not been broken. With the set up it shows that pair is bullish.

The image below shows the Daily Price Action set up based on Support/Resistance, and Trendline showing that the trendline is yet to be broken making it bullish.

http://screencast.com/t/OOLhurygPD

  • EURUSD TRIGGER TIME FRAME (H4)

The trigger chart shows the trenline were price will pullback to before you can place a bullish position as bullish trend have been confirmed in Weekly and daily time frame. Any bearish move will be regarded as a retracement.

The image below shows the Trigger set up based on Support/Resistance, and Trendline.

http://screencast.com/t/eLlOqHVsT0

  • GBPUSD WEEKLY CHART

The weekly chart of GBPUSD fully explained in my article last week. I picked on this pair this week because of the trend continuation. The pair is still in a bullish trend. I will also upload the trigger chart for those that are unable to place position to do so by paying attention to the trigger chat. Weekly chart show a good bullish Inside Bar formation. When last Week Candle closed on the Weekly chart July 19, 2013 it did not produce a reversal candle pattern. The link below shows the live trade chart for GBPUSD I posted last Week .Below image shows the current position of Weekly chart

http://screencast.com/t/FIvbTPq9

  • GBPUSD DAILY CHART

The set up at Weekly time frame help to identify the direction of the trend when zoom to Daily Time Frame to draw a Trendine. If the price is unable to break the trendline hold your position even if the daily candle closed in opposite direction. When you look at the Daily chart of the above pair you will observe that the trendline have not been broken. Therefore the pair is still bullish.

The image below shows the Daily Price Action set up based on Support/Resistance, and Trendline showing that the trendline is yet to be broken making it bullish

http://screencast.com/t/4uTRYns88iA

  • GBPUSD TRIGGER TIME FRAME (H4)

The trigger chart shows the Trenline were price will pullback to before you can place a bullish position as bullish trend have been fully confirmed in Weekly and daily time frame. Any bearish move will be regarded as a retracement.

The image below shows the Trigger set up based on Support/Resistance, and Trendline.

http://screencast.com/t/YurJzTttorfv

  • USDCHF WEEKLY CHART

I spotted out a Bearish Railway Track set up in USDCHF Weekly chart last Week as price reacted from the Resistance and formed a reversal pattern called Bearish Railway Track which makes the pair to maintain a bearish trend. See blow link for last Week article on USDCHF. When I looked at the pair as the Market closed last week Friday the weekly Candle did not show any trade reversal pattern. Therefore the trend is bearish. Zoom to lower time frame for a pullback to place a sell position. If you can be patient to read this article till the end I will post the trigger chart for you to understand how to use the trigger chart for entry position.Below image shows the current position of USDCHF Weekly chart.

http://screencast.com/t/IdfdUc2gDVNk

  • USDCHF DAILY CHART

The set up at Weekly time frame help to identify the direction of the trend when zoom to Daily Time Frame to draw a Trendline. If the price is unable to break the Trendline hold your position even if the daily candle closed in opposite direction. When you look at the Daily chart of the above pair you will observe that the Trendline have not been broken. Therefore the pair is still bearish. The image below shows the Trigger set up based on Support/Resistance, and Trendline.

http://screencast.com/t/aUXJ4D5MpNzL

  • USDCHF TRIGGER TIME FRAME (H4)

The trigger chart shows the Trenline were price will pullback to before you can place a bearish position as bearish trend have been confirmed in Weekly and daily time frame. Any bullish move will be regarded as a retracement.
The image below shows the Trigger set up based on Support/Resistance, and Trendline.

http://screencast.com/t/hKNDjtggi0m

USDCAD WEEKLY CHART

Check last Week article for USDCAD on the below link to confirm were I generated the bearish set up on Weekly time frame.

This Week the pair will continue to maintain a bearish trend but wait for price reaction at the Lower Channel..Below Weekly chart shows the current position of USDCAD.

http://screencast.com/t/enBceQu3dH0


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