Forex Trade Alert for Tuesday Jan 12, 2010.

GBP/JPY

On Jan-12-2010 a candlestick formation confirmed a sell signal. A sell signal was also confirmed when this currency pair closed below 147.33 on Jan-05-2010. 4xGenie Action: ==> SELL @ 147.30. Stop at 151.20. Wave 5 could drop down to 143.30 or to 136.86. Today’s candlestick appears in the yellow shaded area of the chart. This reflects strong consolidation here!

Next Day Trading Ranges for Tuesday Jan 12, 2010

The 20 day moving average of the daily trading range is 171 Pips and the 60 day moving average of the daily trading range is 212 Pips. This shows that volatility has decreased in the short term. The percentage of downdays when the open/high ratio is less than 25% is 52.52 percent. This means that if this currency pair does not rise more than 42 Pips from the opening price then there is a 52.52 percent chance that this will be an downday.

The [R3] or the most extreme high trading range is 149.5367.

The [R2] or the extreme high trading range is 149.0333.

The [R1] or the high trading range is 148.6567.

The [P] or pivot point is 148.1533.

The [S1] or the low trading range is 147.7767.

The [S2] or the extreme low trading range is 147.2733.

The [S3] or the most extreme low trading range is 146.8967.

Next Day Alternate Stops for Tuesday Jan 12, 2010

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 rises above 149.03 then that would show momentum against 4xGenie‘s short position and that would be a break out to the upside.

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:

Downward momentum has ended.

Next Day Trading Session:

If the next day’s close is below 147.30 then that could be a sign that new downward momentum is beginning.

4xGenie Support Team

Related articles by Zemanta

• Money Management Principles in Forex Trading (Part III) (mt-soft.com.ar)

Tags: forex option chain, free daily forex advice, forex opportunity, best forex expert advisor, forex signals testimonials, how much do forex traders make, gain capital forex api

Tweet This Post