Chart Pattern Review - 48 Hours Later 

Two days ago I posted several charts showing some nice chart patterns - indicating to me a 

consolidation was ready to breakout and I labeled the post “Pause Before the Storm” 

Let’s look at the charts side by side now.

 USD-CAD 4 Hour Chart — 300 Pip Triangle Break Out (click to Enlarge)

 EUR-USD 30 Min Chart — Over 400 Pip Trend Channel Break (click to Enlarge)

USD-CHF 2 Hour Chart - Triangle Break - 200 Pips (click to Enlarge)

The above charts are great examples of waiting for High Probability setups on multiple pairs

all setting up at the same time.

The Week Ahead - Calendar and Webinars

 Summarized Scheduled Economic Calendar - Click Here

***  Attend A Free Live Market Coverage and Technical Analysis Webinars ***

Click Here to Register for this weeks “1st on Forex” The Week Ahead Webinar  - Every Monday at 12 Noon EDT -

FOMC Live Webinar Tue December 16  - Click Here to Register

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

Dec 9, 2008 - Pause Before The Storm?

“Show and Tell” on Chart Patterns

Lot’s of Chart Patterns are Currently Forming on the Currencies - A brief discussion and then a look at some good examples of Triangle Patterns all setting up at the same time on different time frames.  

Furst -  let me give you my “two Ameros” on chart patterns. I consider them all to be “consolidation patterns” and have no bias that - for example,  an “ascending triangle”  is a “bullish pattern” - to me,  it could go in any direction. What I look for is the strength of a well formed pattern.

Is it well formed? 

If I can show people a chart and everyone quickly recognizes a Head and Shoulder Pattern, that’s a strong signal. If there is lot’s of debate - then it’s weak.  Chart Pattern recognition gets fun when you see a pattern forming at the right edge, but not yet completed. Aggressive traders can take a position that the pattern will first form - and then if it does, prepare for the potential price targets.

Don’t Get Bogged Down In Statistics

I debate the statistics some apply to chart patterns. For example: Maybe someone tested 1085 head and shoulder patterns and determined that  83.7% have a probability of completion in a certain circumstance.  So what! The 16.3% chance is just another “50-50″ coin flip if you are only looking at statistics. Well - let’s just say that I can disprove anything with statistics..

US Dollar - Canadian - Dec 9, 2008 - 4 Hour Chart

USD-CADVery Strong Triangle Pattern forming on the Dollar - Loonie. Note the multiple areas where the upward trend Channel has held - and the Resistance forming a classic Triple Top. (click to enlarge)

Euro - US Dollar Daily Chart - Dec 9, 2008

EUR-USD: No Shortage of Chart Patterns Here as we have a pretty good triangle pattern, with a consolidation zone inside. Note the Upward Trend Channel that will be brought into focus on a 30 Min chart Below

EUR-USD: 30 Minute Chart of EUR-USD Shows the Upward Trend Channel and Resistance Levels  (Click to enlarge)

US Dollar - Swiss

USD-CHF: 2 Hour Chart Dec 9, 2008 - Nice Triangle to complement the Euro-USD Pattern (Click to enlarge)

Aussie - US Dollar - Dec 9, 2008 4 Hour Chart

AUD-USD - 4 Hour Chart - Yet Another Triangle! - (Click to enlarge)

The Week Ahead - Calendar and Webinars

 Summarized Scheduled Economic Calendar - Click Here

***  Attend A Free Live Market Coverage and Technical Analysis Webinar ***

Click Here to Register for this weeks “1st on Forex” The Week Ahead Webinar  - Every Monday at 12 Noon EDT -

FOMC Live Webinar Tue December 16  - Click Here to Register

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

Good News and Signs Emerge

The US Consumer is feeling more optimistic, and the President Elect continues to show he is working hard at putting together his team to address the US and World economic situation.

The Currencies React

At 8:30 the news hit the charts that the US GDP came in at the consensus number of -0.5% growth.

The Pound Sterling rose from 1.5000 to 1.5400 in an hours time!

Dollar Losing to the Loonie? Chart above shows a possible beginning of a new Stair Step pattern down.

Jerry Furst is Sr Technical and Market Analyst and Founder of Investors Education Network (IEN), He is a an active trader, educator, mentor, and trading coach to Select Clients  Click Here for your Free Trader Self Evaluation Survey.

Dollar Rally Pauses - Charts Tell The Story

The Dollar may be poised to retrace as several bad numbers are out again so far this week, GM is still teetering on either Bankruptcy or Bailout, and Wednesday is bringing CPIand Housing Data that may poke the charts around a bit. Take a look at the following three 4 Hour charts of the Euro, Loonie, and Swiss pairs versus the US Dollar.

Euro at the Crossroads - Triangles and Trend Chanells (click Above)

USD-CAD - Trend Chanell or Triangle Break (click above)

USD-CHF: Upward Trend Coming to the End of the Road?

 Jim Rogers, “It’s Happening Again!”

The famed trader speaks on the US Dollar, Real Estste Speculation, and more…

 http://www.ft.com/cms/893ac9c8-757e-11dc-b7cb-0000779fd2ac.html?_i_referralObject=929363526&fromSearch=n  From www.FT.com

Click Here to Register for “1st on Forex” The Week Ahead - Every Monday at 12 Noon EDT

Click Here to Watch Live Coverage of the US GDP Sponsored by   Tue - Nov 25

Jerry Furst is Sr Technical and Market Analyst and Founder of Investors Education Network (IEN), He is a an active trader, educator, mentor, and trading coach to Select Clients