EURUSD Monthly Chart with 5-EMA – Currently Not Extended

This post is a follow-on to the previous posts showing monthly charts with the 5-EMA. The charts for the USDCHF and GBPCHF pairs show current situations where price is extended away from the 5-EMA, and whether this is a decent clue for the risk of reversal remains to be seen. However, the yellow squares on the EURUSD chart definitely show that on many occasions when the EURUSD has been near a turning point on the monthly time frame, it has found itself extended away from the 5-EMA. The most recent example was 1 year ago with the EURUSD plunging to lows on the monthly chart in the low 1.2000’s high 1.1teens.



USDCHF Monthly Chart Well Extended from 5-EMA

The attached monthly chart of the USDCHF has plotted a 5-EMA along with yellow squares surrounding monthly price bars that failed to touch the 5-EMA. Bear in mind that the most recent price bar is in progress with the 5-EMA currently at 8570’s (subject to change by end of July).


GBPCHF Monthly Chart Extends Away from 5-EMA

Keeping with the theme about the monthly 5-EMA and the failure to touch it during the month, this blog post has a chart of GBPCHF.


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.




EURUSD – liquidity gap fill to the downside in progress?

I like this chart of EURUSD for the last week, it shows a possible weekly time frame pin bar being formed on the 1H chart, the only thing EURUSD needs to do is finish the week near the current levels, which is by no means a certainty. The chart demonstrates some of the patterns found at the web site, which is a great resource for forex traders. The spike base pattern is one that I like to keep my eyes peeled out for on 1H and 15m and 5m charts because it repeats a lot ( In this environment where EURUSD is capable of trading like a yo-yo between EU debt concerns and the laundry list of USA concerns (debt ceiling, QE speculation/anticipation etc.) the pattern becomes that much more important since liquidity gaps crop up as a result of ad-hoc news (comments on wires by central bankers, bond auction results, rating agency downgrades, etc. etc.).

If EURUSD wants to print a pin bar for weekly chart this week, maybe on Friday it will try and print a pin bar too, perhaps by tagging the 1.4090s area (Missed Daily pivot from Tuesday)….


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,


EURUSD – the week in review on the 1H DIBS

It may be a while for posting any DIBS Chart books this week, but here is a quick review on the 1H chart of the EURUSD’s past week of DIBS. Some of the standout signals on the DIBS were

1.       Monday June 27th printed a 1H DIBS during London-NY session that triggered within 2-hours that triggered at the 4220’s. This was one of those early week DIBS breakouts that was able to survive the whole week as price spent the rest of the week in an up-channel in the build-up to Wednesday’s Greek parliament vote on the Austerity/Budget measures required for the next tranche of IMF bailout funds.

2.       Wednesday June 29th was a notable day as DIBS signals appeared both before and after the vote. The pre-vote signal just about got to 1:1 before the wild whip-saw during the voting process. The violent shakout then saw EURUSD consolidate with a “DIBS Coil” (i.e. 3 inside bars within consolidation during the late NY session / run-up to Thursday’s Asia session).

3.       Thursday and Friday were quite whippy days as EURUSD consolidated the gains post the Greek vote.

All in all this past week was an above average week on the volatility front as the pip range was 450pips verses a 52 week average of 356pips.


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