Saturday, October 30, 2010

technical analysis on Dow Jones because its correlation with currency pairs

  Market direction is very important to have a sense for currency pairs direction most of the time
Correlation in the Dow Jones and Currency is one thing I have noticed  Some currency  with positive and some negative but correlation at least in the major pairs I follow.  USD related pairs and few exotic , but with new regulations in margin my favorites are USD  related pairs for now because lower price for entry and exit  vs other non USD pairs. They are USD/CHF,  EUR/USD,  AUD/USD,  NZD/USD, USD/CAD,  USD/JPY, GBP/USD

# 1 Market Trend   is  up in last 20 years in Dow Jones Industrial  Yearly chart candles
       A caution of  bearish head and shoulder on the making( there is always uncertainty for me) 
  


#2   Market trend  up in 20 years  Quarterly  Chart Dow Jones Industrial  
                      with  30 day Moving Average --price closing and sitting above it , (signaling a long entry )                                                                                                                                                                              


                                                     
    #3  weekly chart candles 20 years in Dow Jones Industrial                                                                       
channel  lines( with 25% , 50% , 75% lines) above  up trend line  
approaching 50% line to find some resistance there if my study is correct           




#4  one year daily chart  Dow Jones Industrial
up trend @ resistance (possible pull back) with the weekly giving an entry signal at this time with a close  above 30 ma and a close above high of previous candle)


#5     60 day  4 hour chart   Dow Jones Industrial 
on up trend according to my study and my style of fib projections 
to hit 11,350 in this run (but a pull back is possible 11,350 must be hit)

note: I remember to hear from instructors' fibs are something you learn to use and after trying it this way, i have found by experience they work this way for me.

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