I just thought I would pop this chart up for you, which is from this afternoon’s trading on the 3rd March 2009, and is on the five minute chart for the euro dollar which was a great signal and an excellent trading opportunity. As you can see on the chart, we had a two hour rally from 12 until around 2 pm, and at this point we get a great signal, an up candle, followed by a gapped up ‘evening star’ sometimes called a spinning top, followed by a wide spread down bar – a classic reversal signal. At this point we are paying full attention, and waiting for any confirming signals which duly arrive on the next two bars with two consecutive shooting stars, signalling weakness, and confirming the earlier signal. Note also that both are contained within the body of the down bar. At this point we enter our short position and close out on the bullish engulfing candle at 16.30! They don’t come any better than that I can assure you, and a classic example of how candle patterns provide the clues to the market direction, but you always have to wait for the confirmation. I just wanted to share this one with you, as it is almost ‘text book’ analysis.
In order to help you with your trading I have added several new services to the site. First there is an economic calendar which provides details of all the fundamental news items from around the world, including details of the forecast and previous figures, but if you prefer your news on video, then the latest currency news is the place to go, with updates three times a day. In addition there is a live news feed, and for the latest prices, live currency charts covering over 70 of the world’s most popular traded pairs. Finally if you would like help with choosing your ECN broker, I have provided some guidance and suggestions for you, which I hope you fin useful.