4-hour timeframe
The whole picture:
As we can see, the price tried to strengthen above Ishimoku indicator and to support, thus, the formed purchase signal, however, it could not do it, the price bounced from the upper bound of Ishimoku indicator and formed the signal for sale quickly, which is working out at present moment. The target of the current movement is the first support level of 1.6347, but in case of the price strengthening below it the target is the second support level of 1.6196. Bollinger Bands also show the downward direction and the Bands widen that testifies about probable continuation of the downtrend. The uptrend is not considered now because of all indicators point to the downtrend. MACD has already turned and is demonstrating the downward movement.
The trading recommendations:
For those people, who are out of the market it is recommended to start the trading below the first support level of 1.6347 with target at 1.6196. For people, who are already in sales it is recommended to look at whether the price strengthens lower the first support level. There are no signals for reversal.
The picture clarification:
The Ishimoku indicator:
Tenkan-sen — red line
Kijun-sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with the white bars in the indicators window.
Good luck in trading,
Stanislav Mikhailovich
November 27, 2009
