DIBS Chart Book for Week Ended July 15th 2011

The latest chart book with DIBS set ups highlighted is available. This past week featured a volatile breakout at the beginning of the week on the “risk off” theme, which was very good to early week DIBS breakouts. As the week progressed and the risk-off sell offs retraced, the action became choppier and less favourable to DIBS signals.





GBPUSD sitting at 2/3rds retracement of YTD Range

The GBPUSD today printed 1.5780 lows, getting very close to the 1.5750’s lows from January 2011, otherwise it has undercut the low printed in every other month so far in 2011.

·         What lies beneath? It looks like the 1.5690’s zone is a 78.6% retracement of the YTD range and also appears as a late-2010 resistance zone.

·         What lies above? Getting back up to the gap fill level at 1.6050s, from the NFP Friday in July.

When to look for a bounce? It looks as though today is headed for printing a pin bar and an up-day (i.e. blue candle in chart below, closing price > opening price), which could set the stage for a bounce back up. So far in 2011, the sell offs in GBPUSD with consecutive seller days (red bars in chart below) have often been halted and reversed after the daily chart has printed a buyer bar.


DIBS Chart Book – Week Ended July 8th

The latest DIBS Chart book is available for the week ended July 8th. The week was quite volatile as there was a lot of “risk off” type news developments. On many occasions the DIBS signals ended up being reversal patterns instead of trend continuation breakout patterns.

This week’s chart book covers EURUSD, GBPUSD and the “risk-on / risk-off” pairs: EURCHF and EURJPY.

Good trading,


GBPUSD – what kind of volatility will see for the Services PMI?

How have ranges looked when Actual Reported Services PMI Lower Than Consensus Forecasts?

·         The screenshot below shows pip ranges during the 3 hours after the Services PMI is released (9:30 AM local UK Time).

·         So far in 2011 there have been 4 instances when the reported figure was below consensus, and it looks like 2010 featured below-consensus readings during most of the months.


GBPUSD – The DIBS Review on a Narrow Ranging Week

GBPUSD was in a relatively tight range last week (c.200pips versus a 52-week average of >300pips of weekly range) which made for difficult conditions to catch any decent follow-through on inside bar breakouts. The chart below shows the DIBS/inside bars (red vertical line through the candles, blue horizontal line = Frankfurt open prices) during the week.

·         Monday-Tuesday was narrow range / basing type action hot on the heels of a 300-pip sell off during the latter half of the prior week. DIBS signals did not appear during the most liquid hours of the trading session, although it looks like a pre-London session inside bar on Tuesday would have gotten lucky for a downside breakout worth >1:1

·         Wednesday was the Greek vote day and GBPUSD followed a similar sequence to EURUSD, printing a DIBS before the vote and a couple of DIBS after the vote. The post-vote DIBS signals were unlucky not to be able to ride the Asia session pop on Thursday (noted on the chart).

·         Thursday-Friday were characterized by some wide ranging bars on the sell offs as GBPUSD tested its lower ranges for support, price reactions were fuelled by sloppy data releases (930 AM UK Time) on both days.

·         Friday’s late session rally was a typical inside bar reversal pattern that got going after 3PM UK time, as GBPUSD followed a strong rally in the S&P 500 to a better than expected print on the ISM.

What’s next for GBPUSD?

·         The narrow ranging week on GBPUSD might be a sign that it’s “storing up energy” in preparation for a big move up or down in the weeks to come. If that’s the case then the environment for catching some DIBS that run for 100’s of pips might be about to turn for the better on this pair.


DIBS Forex Chart Book For the Week Ended June 24th 2011

The latest chart book showing some recent DIBS charts for a few Forex pairs is available. This week the book features EURUSD, GBPUSD, USDCHF and has also included EURJPY, EURCHF and GBPCHF.


$GBPUSD – Trading News and Multi Time Frames with DIBS

WordPress has fried this blog post, click on the link to the Blog and you can read the original blog post with all the charts.

Go to FX DIBS 4 pips blog

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