I am sure you Elliott Wavers out there can spot the five-wave bull phase in the above chart. Elliott wave theory posits that bull phases unfold in five waves.
Waves one, three and five are impulse waves in the direction of the main trend. These waves are fractal in nature, meaning that each of these larger waves can be subdivided into further five waves of lesser degree. Waves two and four are corrective and subdivide into three-wave patterns. Many of these impulse and corrective sub-waves can be further subdivided into levels of even lower degree.
For the rest of you who don't know what I am talking about, I know it all sounds confusing, but it's not important that you understand Elliott Wave theory to trade the forex successfully. I just thought it interesting to point out that these two techniques -trend lines and Elliot Wave theory - both complemented each other in the above chart. Reading trend lines is the easiest and simplest approach, so don't get hung up on the complexity of Elliot Wave theory here. You may wish to read up on it later on at some point. The more you know about technical analysis the better. He/she who has the most knowledge in this business wins.
At 7:00 pm Sunday, New York time, trading begins as markets open in Tokyo, Japan. Next, Singapore and Hong Kong open at 9:00 pm EST, followed by the European markets in Frankfurt (2:00 am), and then London (3:00 am). By 4:00 am, the European markets are in full swing, and Asia has concluded their trading day. The U.S. markets open first in New York around 8:00 am Monday, as Europe winds down. Australia will take over around 5:00 pm, and by 7:00 pm Tokyo is ready to re-open.
All times are quoted in Eastern Standard Time (New York).
Ever since FX Solutions have been open, they have always opened at 7:00 pm on Sundays and closed at 4:30 pm on Fridays. The definition of a day at FX Solutions is the 24-hour period between midnight and midnight the next day.
Buy on Friday close / Sell on Monday close - The Weekend Effect
A "weekend" effect exists in currency prices. "Good" news is released during the week when it can be acted on, and "bad" news is released on weekends when it is more difficult to respond to. Also, less information per day arrives on weekends; therefore, the overall effect on forex rates is greater than during the week.
You should complement this tendency with other proven strategies that confirm a move is likely.
Two "free" forex sites worth looking at...
www.technical-investor.de is for the self-directed trader and technical aficionado.
www.chartware.de is for the trader who seeks instant review of conditions.
www.technical-investor.de offers a range of charting, such as one week, one month, three months, six months, and on up to one, two, five and 10 years. Once a time frame is selected, the site offers 12 charting style choices and access to more than 50 indicators. It also supports overlays of Fibonacci retracement, Fibonacci fans and Fibonacci time zones. You can even pull down a Renko chart of the euro, and select any time frame.
To navigate, load the site and click "Charts and Tools" on the left side of the home page layout. Then click "TradeSignal Basic" on the right side of the new page. This will call up a chart. You then enter a currency's symbol in the space provided, and you will have access to the trading tools.
www.chartware.de provides easy access to a total view of a currency without having to do any heavy analytical work. You can register for free, and list the currencies you want to monitor.
After you log in, you will see your list. Then you can click on the menu, and get a complete review of the technical conditions of the currency in terms of trend lines, candlestick patterns, and eight indicators. This site alerts you to divergence conditions in indicators, and offers the option to highlight the most important candlestick patterns.
The site acts as an intelligent agent providing a frame of reference that, after you see it, you'll be eager to revisit everyday.
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