GBP/USD : Technical Analysis
Hi again… Weds. 5th May 2010.
I’ve decided to use the Ichimoku Kinko Hyo overlay on today’s chart a) because I’d like to keep these articles varied and interesting, b) it’s an “at a glance” reading by definition (or at least by translation) and c) because I thoroughly enjoy debating with my spell checker lol!
Looking at the daily graph below, the Tenkan-Sen is clearly in a downward movement showing a trend. the T-S crossed over the K-S from above, showing a sell signal, while the Chikou Span is at or below the current price, another good selling signal. The Kumo is thick, showing quite high volatility in this pair and, with the price dropping into the cloud, shows some support is expected.
Shorts are in play and price has now managed to push through the double hourly lows at 1.5212. Hourly studies are bearish and show risk for further weakness. Daily charts remain bearish in favor of the trade and the MACD is showing good separation while traveling south.
Senkou span A Green
Senkou span B Yellow
The cloud, known as the Kumo, is the space between Senkou Span A and Senkou Span B.
The most active day is Thurs (31% TM)
81% of trends occur between 01:00 and 13:00.
39% TM begins at 05:00
A scalpers Disclaimer
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Many traders end up losing money because they fail to make trades that meet their own criteria.
“Plan the trade and trade the plan” …. Success is impossible without discipline.
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