Tag: Median lines

How to trade breakouts with Median lines

How to trade breakouts with Median lines

Trading Strategies
Median line, also known as Andrews' Pitchfork tool is a great tool to help in your trading, especially if you are a price action aficionado. Median lines are nothing but trend lines which are divided into two parts and can offer some unique insights when applied correctly. Although Median line trading is easy, it takes a bit of time and practice to correctly figure out where to trade and more importantly how to trade. There are many articles on the web that will introduce you to median lines or Andrews' pitchfork. Therefore, this article will not go into the details of the basics but in fact introduces you to a unique way to trade with median lines. Step 1: Plotting median lines correctly Median lines are plotted using a low - high - low on a consecutive pattern, which usually results...
AUDNZD – A potentially juicy trade setting up

AUDNZD – A potentially juicy trade setting up

Technical Analysis
The Aussie dollar has been prone to some wild swings this week. It all started off few weeks ago with the RBA Governor Glenn Stevens giving a speech to the Australian American Association in New York. In his comments, the RBA Chief made indirect reference to the 'high exchange rate' of the Australian Dollar and that further rate cuts were on the table and something which the Australian Central Bank could dig into if need be. These remarks sent the Aussie plummeting sharply and once again arousing speculation of May rate cuts. You can read The World Economy and Australia from the RBA website. Then a couple of days, sentiment in the US soured and with the GDP numbers disappointing for the quarter (they weren't really, if you consider the bigger picture, but that's a different story), t...
GBPUSD – Weekly divergence points to downside correction

GBPUSD – Weekly divergence points to downside correction

Technical Analysis
It is without a doubt that the British Sterling has been one of the strongest performing currencies among the G7 since last year. Although the Kiwi Dollar has been gaining strength, the British pound has been consistent and steady over the year which makes it a prime currency pair to be long on. Since the start of the rally, traders who have been long have been aiming for the 1.7 level. So far, price has failed this level quite a few times, coming as close to 1.6995. While there have been dips during the course of the rally to 1.699 it cannot be justified to call these dips a correction. In this analysis, we present the GBPUSD correction to the downside along with a hedge trade in GBPJPY to offset any risks from the Cable's short term short trade. GBPUSD - Weekly Charts Analysis On th...
USDDKK Analysis – A long term short trade opportunity

USDDKK Analysis – A long term short trade opportunity

Technical Analysis
The US Dollar, Danish Kroner makes for an exotic currency pair to trade which usually misses the attention of many forex traders. From a technical perspective, the USDDKK paints a beautiful long term picture with current price action validating the technical pattern that has been formed. Starting with the weekly charts of USDDKK, we notice a very clear Head and Shoulders pattern that is formed, with the neckline coming in at 5.5740 region. The neckline was broken and price did drop a bit before retracing the moves and currently looks poised to test the neckline level. This brings us to the question of entry. While it is no brainer to short USDDKK from the neckline level, taking a more informed trade decision would help traders in gaining a better price for entering the market. ...