FOREX TRADING

Technical Analysis for Major Currencies

EUR/USD

The 1.4375 was able to halt further inclines for the Euro versus Dollar pair to reverse to the downside, in an attempt to gather enough bullish momentum from the pivot support at 1.4250, before rebounding back to the upside to incline on the intraday basis targeting 1.4600 initially. This incline remains as far as 1.4120 is intact.

The trading range for today is among the key support at 1.4020 and the key resistance at 1.4600

The general trend is to the downside as far as 1.4720 remains intact with targets at 1.2120

Support: 1.4250, 1.4170, 1.4120, 1.4070, 1.4000
Resistance: 1.4375, 1.4430, 1.4475, 1.4550, 1.4600

Recommendation: Based on the charts and explanations above, our opinion is buying the pair from 1.4250 to 1.4375 and stop loss below 1.4170 might be appropriate

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Price envelopes consist of 2 moving averages and are plotted at a set percentage above and below a 3rd moving average. Price envelopes can be used to show overbought and oversold levels. Overbought conditions are found at the upper band and oversold conditions at the lower band.

Price envelopes consist of three moving averages:

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Forex Exponential MA- Weighted MA strategy

What do you need:

1. one hour or 30 minutes timeframe
2. 18-period EMA and 29-period EMA (draw them using red)
3. 5-period WMA and 12-period WMA (draw them using yellow)

18 and 29-period EMA are two red lines which form a tunnel, (more…)

Another MetaTrader expert advisor was added to my site today — MACD Pattern. It’s based on the MACD patterns (Moving Average Convergence/Divergence), specifically for EUR/USD H4 chart. It shows quite interesting back-test results but, unfortunately, has also two major problems. First, it has more than 27% maximum relative drawdown (that’s more than $6,000 drop during one moment). Second, it doesn’t explicitly control bar opening and uses stop-loss and take-profit levels, which means that the backtests aren’t very accurate and the resulting data had better be treated very skeptically. But 60% profit over the course of less than 19 months is quite nice. Here you can see the test results graph (click to enlarge):

A strong drawdown can be seen close to the end of the test — its reason is unknown to me, but I guess it’s tolerable.

You can also view the complete testing report. Go directly to MACD Pattern expert advisor page to download this EA or get more information about it. If you don’t like MACD Pattern, you can check other MetaTrader expert advisors.
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Read the rest of Expert Advisor Based on MACD Patterns (20 words)

Posted on Forex blog.