Forex Investment and Currency Trading

Relax. Noting is especially scientific or particularly complicated about technical analysis. Many in the market use the term science to describe the mechanics of various technical tools, but technical analysis is far more art than science.
Each tool in technical analysis has a number of concrete elements that we need to outline before you can start interpreting what they mean. Unless you’re developing your own systematic calculations behind various indicators. Far more important is understanding what the indicators are measuring and what their signals mean and don’t mean.
Momentum oscillators and studies
Momentum refers to the speed at which prices are moving, either [...]

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The pitchfork is created by drawing a line A from the start and finish of the first significant counter-trend price move (retracement) and then drawing a rend line B from the mid-point of the line back to the start of the original price move. Next, extend this line B to the right and draw two parallel lines starting from the end points of line the first line A (to the right).
Trend lines have been applied to all markets in all time frames. A rising market bounces up off its supporting trend line and a falling market bounces down off its [...]

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In recent months there has been a significant degree of IAOL – “its all one trade” – in financial markets, with a high degree of correlation of risk-seeking and risk-aversion trades. In particular, movements in equity prices have provided a significant “guide” to performance in the foreign
exchange markets of growth oriented currencies versus risk-aversion currencies– with the AUD/JPY cross a key G10 example on that relationship.
It is in this context that recent signs of support for equity prices could take on significant importance for currency movements during the weeks ahead. First, the S&P 500 index appears to be testing – [...]

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FX Bottom Line: If the S&P 500 Index manages to form a bottoming pattern against last Thursday’s bullish key reversal low of 818.91, the DXY is likely to undergo a retracement phase that would highlight support levels at 84.45, 83.82 and 82.32. Keep an eye on this relationship this week.
The possibility is raised that the S&P 500 Index is attempting to stabilize against last Thursday’s (bullish key reversal) low of 818.91.
With a potential triple bottom pattern forming near 845.27 for stocks, a close above resistance at 940.73 would produce a bullish trend reversal.
This would then highlight the reaction highs near 1007.46 [...]

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