by Jerry Furst Sr. Technical Analyst at Investors Education Network

Technical Analysis Explained - at The Right Edge… But 1st…

Lately there has been so much Fundamental News going on I have writers block - I don’t know what to write 1st! So I decided to break the blockage by just doing a Technical Analysis lesson on chart patterns, rather than get into the BRIC Meeting that took place in Russia, being attended by the contested leader of Iran, or how the TIC data showed China has started selling, or how Ken Lewis CEO of  Bank of America told congress he was forced by the Fed and Treasury to take on Merrill Lynch, or how… well here’s the TA…

June 16, 2009 as the European Session opens we have some really nice examples of Technical Analysis - Chart Patterns on the 4 Hour Charts.  It’s worthy to mention that the 4 Hour Charts will be a good guide for the “Intermediate Term” Forex Trader.

You can then trade the shorter time frames accordingly! - Just Follow the Charts

Rounded Top

GBP-JPY 4 Hour Chart Shows Downward Trend Continuing after Completing a Rounded Top

“M” Pattern - Double Tops - Failed Inverse Head and Shoulders

AUD-USD 4 Hour Chart Shows a Double Top and ”M” Pattern May Be Next. Note that the “Inverse Head and Shoulders” failed to break the “Neck Line” and bounced back down to the “Top of the Head”.

Twin Peaks - Possible “M” Pattern

GBP-USD 4 Hour Chart Shows “Twin Peaks” or “Double Top”. Look closer and you will see a “Head and Shoulder” Pattern on a 30 Minute Chart that may propel this chart further downward to complete a “M” Pattern.

Head and Shoulders - Rounded Tops

EUR-USD 4 Hour Chart - Head and Shoulders formed with good examples of Rounded Tops. Ready to “Bounce or Break” off the “Neck Line”

Rounded Bottoms and Inverse Head and Shoulders

USD-CHF 4 Hour Chart Shows Rouneded Bottoms with Inverse Head and Shoulders

Rounded Top  - Inside Triangle Pattern

USD-JPY 4 Hour Chart shows Riunded Top Completed and then Breaking the Trend Line of a Triangle completes the Triangle’s Target in a prompt fashion.

Rounded Tops and Bottoms - In Summary

Can you see how these patterns repeat and show inside of other patterns?

Happy Pattern Hunting and feel free to email me when you see patterns at the “Right Edge” that get your attention - or need clarification.

Happy Trading in Good Health

Jerry Furst  is an active trader, educator, and Founder of Investors Education Network.com (IEN), He is available as a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.