Forex Trade Alert for Thursday Jul 17, 2008.

On Jul-17-2008 a candlestick formation confirmed a buy signal. 4xgenie Action: ==> Buy this currency pair EUR/CAD at 1.5972. Stop at 1.5823. Wave 5 could rise up to 1.6173 or to 1.6358. Today’s candlestick appears in the yellow shaded area of the chart. This reflects strong consolidation here!

MONTHLY PIVOT ALERT: The monthly pivot point has been tested recently. Resistance level of 1.5881 was broken today. When the monthly pivot point is broken - we can look for a possible rise to the monthly R1 ( resistance level 1).

Next Day Trading Ranges for Thursday Jul 17, 2008.

The 20 day moving average of the daily trading range is 148 PIPS and the 60 day moving average of the daily trading range is 161 PIPS. This shows that volatility has decreased in the short term. The percentage of updays when the open/low ratio is less than 25% is 54.55 percent. This means that if this Currency pair EUR/CAD does not drop more than 37 pips from the opening price then there is a 54.55 percent chance that this will be an upday.

Monthly Pivots.

The [R3] or the most extreme high trading range is 1.6118.

The [R2] or the extreme high trading range is 1.6040.

The [R1] or the high trading range is 1.5986.

The [P] or pivot point is 1.5908.

The [S1] or the low trading range is 1.5854.

The [S2] or the extreme low trading range is 1.5776.

The [S3] or the most extreme low trading range is 1.5722.

Next Day Alternate Stops for Thursday Jul 17, 2008.

The red line to the right on your chart is an extreme support or resistence level for the next trading day.

A good alternative stop is one which is placed just beyond this extreme support/resistance level.

In this particular case if the price drops below 1.5776 then that would show momentum against 4xGenies’s long position and that would be a break out to the downside.

Please Note: These support/resistance levels are calculated by using the previous day’s trading range. Normal volatility may cause a breakout of this value once every 4 or 5 days when prices consolidate.

Current Day Trading Session:

No signs of upward momentum at this time.

Next Day Trading Session:

If the next day’s close is above 1.60917 then that could be a sign that new upward momentum is beginning.

Important Notice :

When trading it is important to know your risks. If you have only been trading for a short time it is highly recommended that you start with a demo account first. Forex trading is highly risky and normally it takes 3 - 5 years to become a successful forex trader. Only risk that which you can easily afford to lose. Forex trading is not a get rich quick scheme, but if managed carefully, it is an excellent investment.